Ever struggle to read corporate financials? I studied this stuff and I'm frequently bewildered at the words. If you're in the #insurance community, here's some stuff that's really helpful to know when reading financials.

Revenues for insurance companies are premiums. Net premiums written means the amount of all new & renewal insurance policies sold in the reporting period minus the cession to reinsurers who assume some of the risk.

Net premiums earned means the share of policy proceeds exposed to loss within a reporting period. Most commercial insurance is paid annually in advance. The carrier posts this amount as earned and unearned. You earn premium over the course of the policy period.

Investment income is the income & interest off of the reserves. In a low interest environment like now, this means that we are reviewing the performance of the stocks. Bonds are a huge chunk of the portfolio for stability but stocks are critical with prime rate where it is.

Policy acquisition costs means the commissions, premium taxes, payroll and other expenses relating to the acquisition of new business. You lazy brokers are responsible for this. @Broker_Brett

Other underwriting expenses basically means the cost of running an insurance company. That's me. That's underwriters. That's rent/leases. That's systems.

There are a bunch of ratios to review but the combined ratio is by far the most important. This is the sum of the loss & expense ratios. A 96% loss ratio means the carrier earned a 4% pretax profit on underwriting activities. Good combined ratios for large carriers are 90% - 96%.

Actuarial adjustments means straight magic and nobody understands what they do.

@light_townsend

@Nick_Lamparelli

@MCins_

@insurancewriter

@InsurTechEd

@InsuranceEleph1

@InsuranceGenY

@insurtech360

@Broker_Brett

@michaelyoungSTL

@Hershkowitzy

@APereaSr

@adam_shniderman

@BillyJura

@SteveTN

@nigelwalsh

@oldst1x

@ghweldon

@robgalb