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Insurance

Underwriting income

An important concept in the world of finance is the insurer's profit, which refers to the amount earned after all expenses and losses have been covered through the sale of insurance. However, when the premiums collected are not enough to cover these costs, it results in an underwriting loss. This loss is usually balanced out by the income generated from investments. As such, the profitability of insurance companies is dependent on both underwriting and investment performance.
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