Glossary

Written premium

The total premium on policies an insurer issues or renews in a period, counted when written, whatever share of the coverage period has passed.

Also called: gross written premium, net written premium, direct written premium, GWP, NWP, DWP

Written premium is the premium on every policy an insurer binds or renews during an accounting period, recorded in full when the policy starts. It is the industry's sales figure. earned premium follows as the coverage period passes. Say a $12,000 annual policy takes effect on Oct. 1 (hypothetical). The insurer books $12,000 as written in that quarter. By Dec. 31 only three months, or $3,000, is earned, and $9,000 remains unearned.

Three versions appear in financial reports. Direct written premium (DWP) is premium on policies the insurer issues, before any reinsurance. Gross written premium (GWP) adds premium assumed from other insurers. Net written premium (NWP) subtracts premium ceded to reinsurers. Our insurer rankings use the NAIC's 2025 direct premiums written for commercial lines: Travelers led with $27.13 billion, as the guide on The 100 largest U.S. business insurance companies shows.

Written premium shows growth and appetite, but it does not show profit. A carrier can write more by underpricing, and the cost arrives in later claims. Pair it with the combined ratio. Regulators and raters also compare net written premium with surplus to judge how leveraged a company is. When rates are rising, written premium can climb even if the number of policies falls.

Last reviewed October 10, 2026

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Related terms

Earned premium The share of a policy's premium that matches the coverage period already elapsed, which an insurer can book as revenue and keep if the policy ends early. Combined ratio An insurer's claims costs plus operating expenses as a share of premium; below 100% means an underwriting profit and above 100% an underwriting loss. Loss ratio Incurred claim costs divided by earned premium, shown as a percentage; the basic gauge of whether the premium collected is covering claims. Statutory surplus An insurer's admitted assets minus its liabilities under regulatory accounting rules, the capital cushion that stands behind policies beyond its loss reserves. Reinsurance Insurance an insurer buys from a reinsurer to transfer part of its risk, add capacity and protect its capital from large or accumulated losses.

Related guides

The combined ratio: how insurers make (and lose) money on underwriting What the combined ratio measures, how to calculate it, what it hides, and where 2025 results by line (AM Best, NCCI) show prices heading for your policies. How commercial insurance premiums are calculated Premium is an exposure base times a rate, adjusted for limits, deductible, experience and schedule rating, plus flat charges. A worked example shows the math. How commercial insurance brokers get paid Commissions, client fees, contingent and supplemental pay, wholesale splits, and the rules that let you ask what a broker earns on your account. How the property-casualty insurance industry works How property-casualty insurers, brokers, reinsurers and regulators fit together, how premium becomes claims payments and profit, and why prices swing in cycles. How to read an insurance company's earnings report How to read an insurer's earnings release as a buyer: combined ratio, reserve releases, renewal pricing and retention, using Travelers' Q2 2026 as the example. IFRS 17 and insurer accounting What IFRS 17 changed in insurer accounting, how the general model and premium allocation approach work, and why U.S. business buyers rarely see it directly.

Related tools

Loss ratio and combined ratio calculator Works out an insurer's loss, LAE, expense, dividend and combined ratios and its operating ratio from the figures in its earnings reports.