What Are Net Premiums Written? Net premiums written is the sum of premiums written by an insurance company over the course of a period of time, minus premiums ceded to reinsurance companies, plus any reinsurance assumed. Net premiums written represents how much of the premiums the company gets to keep for assuming risk. Key Takeaways
What Are Net Premiums Written to Policyholder Surplus? Net premiums written to policyholder surplus is a ratio of an insurance company’s gross premiums written less reinsurance ceded to its policyholders’ surplus. Net premiums written to policyholder surplus is a measurement of how many losses the insurer can absorb from claims. Understanding Net Premiums Written To
What Are Net Proceeds? Net proceeds are the amount the seller receives following the sale of an asset after all costs and expenses are deducted from the gross proceeds. Depending on the asset sold, the costs may account for a small percentage of the gross proceeds or a substantial percentage of the gross proceeds. Capital gains taxes
What Is a Net Profits Interest? A net profits interest is an agreement that provides a payout of an operation’s net profits to the parties of the agreement. It is a non-operating interest that may be created when the owner of a property, typically an oil and gas property, leases it out to another party
What Is Net Receivables and How Is It Calculated? Net receivables are the total money owed to a company by its customers minus the money owed that will likely never be paid. Net receivables are often expressed as a percentage, and a higher percentage indicates a business has a greater ability to collect from its
What Is Net Sales? Net sales is the sum of a company’s gross sales minus its returns, allowances, and discounts. Net sales calculations are not always transparent externally. They can often be factored into the reporting of top line revenues reported on the income statement. Understanding Net Sales The income statement is the financial report
What Is Net Settlement? Net settlement is a bank’s routine resolution of the day’s transactions at the end of the business day. Since many or most bank transactions are now sent electronically, this is no longer a matter of counting the cash in the drawer. Instead, the bank has to add up all of their
What Is Netting? Netting entails offsetting the value of multiple positions or payments due to be exchanged between two or more parties. It can be used to determine which party is owed remuneration in a multiparty agreement. Netting is a general concept that has a number of more specific uses, including in the financial markets.
What Is Net Unrealized Appreciation? Some companies offer the benefit of employees owning stock in the employer company. The idea is that this creates an ownership mentality in the employees, even if they own a very small percentage of total shares. The net unrealized appreciation (NUA) is the difference in value between the average cost
What Is a Nest Egg? A nest egg is a substantial sum of money or other assets that have been saved or invested for a specific purpose. Such assets are generally earmarked for longer-term objectives, the most common being retirement, buying a home, and education. The term can also refer to money kept aside as
