# Premium Growth

Year-on-year growth in premiums earned.

## Definition

The change in premiums (and annuity revenue) earned against a year earlier. It mixes volume and price.

## Formula

((Premiums − Premiums a year ago) ÷ |Premiums a year ago|) × 100

## Why it matters

Premiums are an insurer's top line. Growth with a steady combined ratio is healthy; growth with a rising one often means business bought at poor prices.

## How Standard Equity uses it

Substituted for free cash flow margin in insurer reports.

## The metric

| Category   | Insurance      |
| ---------- | -------------- |
| Unit       | %              |
| Applies to | Insurance only |

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