2022-23 SGI CANADA Annual Report

Underwriting capacity Underwriting income/loss Unearned premiums The maximum amount that a company can underwrite. It is based on retained earnings and investment capital held by the company. Using reinsurance allows a company to increase its underwriting capacity as it reduces the company's exposure to particular risks. The difference between net premiums earned and the sum of net claims incurred, commissions, premium taxes and all general and administrative expenses. The difference between net premiums written and net premiums earned. It reflects the net premiums written for that portion of the term of its insurance policies that are deferred to subsequent accounting periods. 2022-23 SGI CANADA Annual Report 85

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