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Home Dictionary N Net Premiums Written Net written premiums are the sum of premiums written less premiums ceded to reinsurers plus any reinsurance assumed. The amount of net premiums written sheds light on how much business an insurance company does in a given period. When calculating net premiums, the insurance company must take into account the difference between earned and unearned premiums. The calculation of the net premium should take into account the estimated future costs and include it in the premiums charged to customers. Activity-Based Management (ABM)
September 25, 2022 Performance Based Management (ABM) is a means of analyzing a company’s profitability by looking at every aspect of its business to determine its strengths and weaknesses. Actuarial Science
September 25, 2022 Actuarial science assesses financial risks in insurance and finance using mathematical and statistical methods. Administrative Services Only (ASO)
September 25, 2022 ASO-based self-financing plans are common among large firms because they can spread the risk of costly claims over a large number of employees and dependents. Agency Problem
September 25, 2022 An agency problem is a conflict of interest inherent in any relationship where one party is expected to act in the interests of the other. Aggregate Stop-Loss Insurance
September 25, 2022 Comprehensive loss insurance is designed to protect an employer that is self-funding its employee health plan from higher-than-expected claims payments. Aleatory Contract
September 25, 2022 an aleatory contract is an agreement under which the parties are not required to perform certain actions until a certain event occurs. Appropriation
September 25, 2022 Appropriation is the act of allocating money for a particular purpose. Asset Financing
September 25, 2022 Asset financing allows a company to obtain a loan by pledging its balance sheet assets. Asset-Liability Committee (ALCO)
September 25, 2022 Asset and Liability Management Committees (ALMCs) are responsible for overseeing the asset and liability management of a company or bank. Audit Committee
September 25, 2022 The Audit Committee consists of members of the company’s board of directors and oversees its financial reporting and reporting. BCG Growth-Share Matrix
September 25, 2022 The BCG Growth Share Matrix is an internal tool used by management to assess the current state of the value of a firm’s divisions or product lines. Both-to-Blame Collision Clause
September 25, 2022 A collision clause between ships is a clause in an insurance policy that states that both ship owners must share liability for a collision between ships if the wreck was due to negligence. Business Insurance
September 25, 2022 Business insurance broadly refers to a class of insurance coverage intended to be purchased by businesses rather than individuals. Buy-In Management Buyout (BIMBO)
September 25, 2022 Management buyout (BIMBO) occurs when an external management team joins the company (buy-in) and also buys out the existing management team. Capital Leases
September 25, 2022 A capital lease is a contract that gives the lessee the right to temporarily use an asset. Capital Markets
September 25, 2022 Capital markets refer to places where funds are exchanged between providers and those seeking capital for their own use. Capital Project
September 25, 2022 A capital project is often a costly, long-term project to expand, maintain, or improve a significant portion of a property. Capital Stock
September 25, 2022 Share capital is the number of ordinary and preferred shares that the company has the right to issue and which are accounted for on the balance sheet as part of share capital. Capital Structure
September 25, 2022 The capital structure is how a company finances its overall operations and growth. Carriage and Insurance Paid To (CIP)
September 25, 2022 Carriage and insurance paid until when the seller pays the freight and insurance to deliver the goods to the party appointed by the seller at the agreed place. Clawback
September 25, 2022 Clawback is a contractual clause that requires the employee to return money already paid by the employer, sometimes with a penalty. Corporate Charter
September 25, 2022 A corporation charter is a document filed with a state secretary or registrar to establish a company as a corporation. Corporate Finance
September 25, 2022 Corporate finance is concerned with how businesses finance their activities in order to maximize profits and minimize costs. Cost of Capital
September 25, 2022 The cost of capital represents the return that a company must earn to justify the cost of a capital project such as buying new equipment or constructing a new building. Cost of Labor
September 25, 2022 Labor costs can be divided into two main categories: direct (manufacturing) and indirect (non-manufacturing) labor costs.