Question
An insurance company earned gross premium of ₹120
crore, of which ₹20 crore was unearned at year end. Claims incurred were ₹65 crore. Calculate the net earned premium and underwriting profit.Solution
Net earned premium = ₹120 – ₹20 = ₹100 crore; Underwriting Profit = ₹100 – ₹65 = ₹35 crore
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