Net Premiums Written To Policyholder Surplus

Net premiums written to policyholder surplus are an accounting measure that calculates the difference between the premiums collected by an insurance company and the claims paid to policyholders. It is used to measure the company’s ability to generate surplus funds.

The formula for net premiums written to policyholder surplus is as follows:

Net premiums written to policyholder surplus = Net premiums collected – Net claims paid

Net premiums written to policyholder surplus can be positive or negative. If the company collects more premiums than it pays in claims, the surplus is positive. If the company pays more in claims than it collects in premiums, the surplus is negative.

Net premiums written to policyholder surplus is an important measure of an insurance company’s financial performance. It is used by investors to assess the company’s financial strength and ability to generate surplus funds.