Net Written Premium (NWP)

Net Written Premium

Net written premium (NWP) is an insurance accounting term that refers to the total Written Premium recorded on the insurer’s books during a specified period, after deducting premiums passed on to reinsurers. Insurers use NWP to measure the volume of insurance business retained by the company after reinsurance.

NWP formula:
Net Written Premium = Gross Written Premium − Premiums Ceded to Reinsurers

See: premium, written premium, gross written premium, reinsurance