In the United States, assumed premiums written represents the premiums that the insurance subsidiaries have received from an authorized state-mandated pool or under previous fronting facilities.
(From EIG 8-K filed Nov 14, 2007) When a non-life (property and casualty) insurance company issues a contract to provide insurance against loss, the revenues (premiums) expected to be received over the life of the contract are called gross premiums written.
Although there is a presumption that an insurance company is financially sound when it possesses a positive net premiums written[citation needed], it is also important to remember that having a negative net premiums doesn't mean that the company is insolvent and is not capable of providing the benefits promised.
[confusing] The nature and timing of reinsurance and other transactions can lead to the net premium written being negative, but this is likely to be temporary.
This bank, insurance, or other financial services corporation article is a stub.