Retained Earnings
Definition of "Retained earnings"
Net profit of a business, less dividends. Reinvestment of retained earnings enables an insurance company to write more business from a stronger capital base. Contributions to retained earnings come from three sources: excess interest from investment earnings; loss savings (fewer and/or smaller losses than were loaded into premiums); and expense savings (less expense costs than were loaded into premiums).
Popular Insurance Terms
Addition to the homeowners INSURANCE POLICY AND COMMERCIAL PACKAGE POLICY that provides liability and medical coverage for damages resulting from the operation of motor boats too large to ...
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Workers' premiums in a contributory employee benefit plan. ...
Coverage in the event of property damage or destruction resulting from wrongful installation of equipment. ...
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Risk distribution included by type of coverage, by kind of risk, and by geographical location. ...
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