What Are Adjusted Earnings? Adjusted earnings is a metric used in the insurance industry to evaluate financial performance. Adjusted earnings equals the sum of profits and increases in loss reserves, new business, deficiency reserves, deferred tax liabilities, and capital gains from the previous time period to the current time period. Adjusted earnings provides a measurement of
What Is Adjusted EBITDA? Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) is a measure computed for a company that takes its earnings and adds back interest expenses, taxes, and depreciation charges, plus other adjustments to the metric. Standardizing EBITDA by removing anomalies means the resulting adjusted or normalized EBITDA is more accurately and easily comparable
What Is the Adjusted Exercise Price? The adjusted exercise price is an option contract’s strike price after adjustments have been made for corporate actions such as stock splits or special dividends made to its underlying security. Any time that changes occur to the securities on which options are written, the strike price and delivery quantity
What Is Adjusted Gross Estate? The adjusted gross estate is the net worth of a deceased person’s estate after deducting the cost of any outstanding debts and administrative costs. Key Takeaways Adjusted gross estate is the net worth of a deceased person’s estate outstanding debts and administrative costs.Taxes are levied on the adjusted gross estate
What Is the Adjusted Net Asset Method? The adjusted net asset method is a business valuation technique that changes the stated values of a company’s assets and liabilities to reflect its estimated current fair market values better. By adjusting asset or liability values up or down, the net effect offers values that can be used
What Is Adjusted Net Worth? Adjusted net worth calculates the value of an insurance company, using capital values, surplus values, and an estimated value for business on the company’s books. It starts with the estimated value for the business and adds unrealized capital gains, the capital surplus, and the voluntary reserves. Key Takeaways Adjusted net worth is a
What Is Adjusted Underwriting Profit? Adjusted underwriting profit is the profit that an insurance company earns after paying out insurance claims and expenses. Insurance companies earn revenue by underwriting new insurance policies and earning income on their financial investments. Subtracted from this revenue are expenses associated with running the business and payments on any claims that are made by
Who is an Adjuster An adjuster is an insurance claims agent. A claims adjuster is charged with evaluating an insurance claim to determine the insurance company’s liability under the terms of an owner’s policy. Understanding Adjuster There are different types of adjusters. They may represent the insurance company, they may be hired by the claimant
What Is an Adjusting Journal Entry? An adjusting journal entry is an entry in a company’s general ledger that occurs at the end of an accounting period to record any unrecognized income or expenses for the period. When a transaction is started in one accounting period and ended in a later period, an adjusting journal
What is Adjustment Bond? Adjustment bond is a new security issued for the outstanding debt of a corporation facing bankruptcy that needs to recapitalize its debt structure. Understanding Adjustment Bond An adjustment bond is issued by a corporation when it restructures its debts to cope with financial difficulties or potential bankruptcy. During restructuring, holders of existing
