M
Michael_14
Member
I understand that Net Premiums are calculated WITHOUT taking expenses into account. While Gross Premiums are calculated WITH taking expenses into account.
Can anyone explain why we give these two things their names of Net and Gross? It seems quite odd to me given that the usual definitions of Net and Gross of any quantity would see them the other way around. Net normally means that all factors have been taken into account in the figure.... doesn't it?
e.g. Given 30% tax on earnings: A gross investment return of $100 would be $70 net of tax.
Regards,
Michael
Can anyone explain why we give these two things their names of Net and Gross? It seems quite odd to me given that the usual definitions of Net and Gross of any quantity would see them the other way around. Net normally means that all factors have been taken into account in the figure.... doesn't it?
e.g. Given 30% tax on earnings: A gross investment return of $100 would be $70 net of tax.
Regards,
Michael