The insurer's profit on the insurance sale after all expenses and losses have been paid. When premiums aren't sufficient to cover claims and expenses, the result is an underwriting loss. Underwriting losses are typically offset by investment income.

"Underwriting Income" In Context

"RLI Corp.'s earnings in the fourth quarter declined over the prior-year quarter primarily due to lower underwriting income at Casualty and Surety, partially offset by higher income at Property. However, results surpassed the Zacks Consensus Estimate."