The amount of new policies written and renewed less the amount of policies lapsed or cancelled. This calculation helps the insurer to determine the total amount of business the insurer has in force during a specific time frame.

Gross claims less the reinsurance recoveries.

The average amount of interest earned on an insurer’s investments after investment expense and before income taxes.
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The average interest earned by an insurer on its investments after investment expenses but before income tax.

The income received from investments such as government and corporate bonds, equities and funds. It also includes changes in market values of investments.
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This item represents investment income earned during the year less investment expenses and depreciation on real estate. Investment expenses are the expenses related to generating investment income and capital gains but exclude income taxes.

A lease where, in addition to the rental stipulated, the lease assumes payment of all property charges such as taxes, Insurance and maintenance.

The pure cost of a life insurance policy through the term of the policy divided by the number of years it is in force.

The reserve an insurer must maintain to pay net level policies in their later years.

The sum of a company’s net premium written to policyholder surplus and net liabilities to policyholder surplus. This ratio measures the combination o a company’s net exposure to pricing errors in its current book of business and errors of estimation in it net liabilities after Reinsurance, in relation to policyholder surplus.

Net liabilities expressed as a ratio to policyholders surplus. Net liabilities equal total liabilities less conditional reserves, plus encumbrances on real estate, less the smaller of receivables from or payable to affiliates. This ratio measures company’s exposures to errors of estimation in its loss reserves and all other liabilities. Loss reserve leverage is generally the key component of net liability leverage. The higher the loss reserve leverage the more critical a company’s solvency depends upon maintaining reserve adequacy.

The amount liability of Company is prepared to expose to loss for its own account.
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REINSURANCE: The amount of insurance the primary insurer carries on a risk after deducting reinsurance from its “gross” line.
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The maximum limit an insurer or reinsurer is willing to accept after taking credit for reinsurance coverage. Such limits are usually expressed per insured, per line of insurance, etc. See Gross line.
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UK: US term meaning the amount of risk that an insurer retains for his own account without reinsurance. More widely a ‘net line’ underwriter accepts business mainly with the intention of ceding all or nearly all of it by way of reinsurance. The underwriter effectively acts in effect as a fronting company or agent.