What Is Written Premium?
Written premium is the total amount of insurance premium an insurer has agreed to collect on the policies it has issued or renewed within a given period. A policy is "written" when the insurer accepts the risk and binds coverage, so the figure reflects the business the company has signed up for, not the money it has already earned.
Insurers commonly report written premium in quarterly and annual results. Because it captures new and renewed policies as they are sold, it serves as a measure of sales volume and growth. Analysts often compare written premium across companies or over time to judge whether an insurer is expanding its book of business.
Written Versus Earned Premium
Written premium is easy to confuse with earned premium. Earned premium is the portion of the premium that corresponds to coverage already provided. An annual policy written in December, for example, has most of its premium still unearned at year end, because the insurer has only protected the customer for a few weeks. The unearned portion is held as an unearned premium reserve on the balance sheet until the coverage period passes.
Because of this timing gap, a fast-growing insurer may show strong written premium while its earned premium rises more slowly.
Net Written Premium and Reinsurance
Insurers often pass part of their risk to other insurers through reinsurance. The premium paid away for this protection is subtracted from gross written premium, giving net written premium. Comparing the two figures can show how much risk a company keeps for its own account.
Why It Matters to Investors
Written premium is a useful starting point, but it does not show profitability. Premiums written today can produce claims for years, and pricing can be too low. Investors usually look at written premium alongside measures such as the loss ratio and combined ratio, which show how much of the premium is paid out in claims and expenses. Written premium tells you how much business was sold; those ratios help show whether that business was profitable.
Updated October 25, 2026. For general education only; not financial, tax or legal advice.