google bot detected Retained Earnings | Insurance Glossary |

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).

Related Real Estate Glossary terms

Related Real Estate FAQ