Unearned Premiums Credit

Unearned Premiums Credit is a financial metric that is typically used in the insurance industry. It refers to the amount of premiums that an insurance company has received but has not yet earned. Essentially, it represents the liability that the insurer owes to its customers for periods of insurance that have yet to expire.

When an insurance company writes a new policy or renews an existing one, it typically collects the full amount of the premium upfront. However, the insurer does not recognize that revenue as earned until the insurance coverage has been provided over the life of the policy. Until that time, the amount that has been collected is considered an unearned premium, and the corresponding liability is recorded as an unearned premiums credit on the balance sheet.

The unearned premiums credit reflects the company's obligation to provide policyholders with coverage over time and is an important component of the insurer's financial position. It represents a liability that must be paid out in future periods as benefits are provided, and is often used as an indicator of the insurer's ability to meet its obligations to policyholders.

Additional Details

Metric Name	Type	Default Period Type
unearned_premiums_credit	fin_statement	FY

Formatting Details

Data Format	Display Format	Unit
float	financial	usd