Over the last 5 years Prime has dratically increased the amount of premium it has written. After starting in 1996 with less than two million in premium and going to over 18 million by the end of 2000, Prime is confident that it's approach to the insurance industry will lead to contiuned growth in the future. Prime Holdings' goal is to create a nationwide open market where there is direct access to agents, brokers and buyers of surplus lines insurance products. This open market approach is unique to the industry and this, combined with the power of the Internet as a source of communication between pu rchasers of insurance and insurance carriers, will enable Prime to capitalize on an enormous opportunity. In the chart below, these three items for the last three quarters are illustrated.
Net earned premium is the revenue recognized in the financial statements.
When premiums growth levels off or declines, net earned premium will exceed net written premiums .