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Measure a digital insurer’s growth with a clearly defined revenue figure, then show how it relates to premiums written, premiums earned, reinsurance, customer growth and underwriting results. Gross written premium (GWP) is useful for tracking policy volume, but it is not automatically recognized revenue. A sound comparison identifies the accounting basis and period, reconciles the measures, and checks whether growth is profitable.
Start by defining what “revenue growth” means
Before calculating a growth rate, identify the business and the measure being reported. A risk-bearing insurer, managing general agent (MGA), broker, embedded-insurance distributor or hybrid may recognize income differently. A single revenue formula does not fit all of them.
- Business and scope: state the entity or segment, geography, reporting period, currency and consolidation perimeter.
- Accounting basis: name the framework, such as IFRS 17 or US GAAP, and distinguish financial-statement figures from management-defined operating measures.
- Premium basis: label measures as gross or net, and explain the company’s definitions and material adjustments.
- Comparability: identify material acquisitions, disposals, restatements, foreign-exchange effects, accounting-policy changes or reinsurance changes between periods.
Then calculate growth using like-for-like figures:
Revenue growth (%) = (current-period revenue − comparable prior-period revenue) ÷ comparable prior-period revenue × 100.
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Keep written premiums separate from recognized revenue
Written premium measures policy production or volume; it does not mean that the same amount has already been earned or recognized as revenue. Gross premiums written generally reflect premiums expected to be collected over the duration of contracts, not just cash received. Under IFRS 17, GWP may be disclosed in the notes, but it cannot be presented on the face of the income statement as a measure of insurance revenue.
Insurance revenue under IFRS 17 reflects insurance service provided during the reporting period. That makes it different from premiums written, and comparisons with older reporting can be affected by the company’s previous accounting policies. The IFRS Foundation notes that for some long-term contracts with deposit components, reported insurance revenue can be significantly lower than amounts presented as premium income under earlier approaches. See the IFRS 17 Effects Analysis (May 2017).
What each measure tells you
| Measure | What it helps show | Key qualification |
|---|---|---|
| Total revenue | The recognized top line in the relevant financial statements. | May combine insurance and non-insurance income; inspect its components. |
| IFRS 17 insurance revenue or earned premium | Insurance service revenue recognized in the period. | Not equivalent to written premium; accounting framework and product matter. |
| GWP or written premium | Underwriting production and market-volume trend before ceded reinsurance. | Not an IFRS 17 income-statement revenue measure; definitions vary by company. |
| NWP or net earned premium | Premium trend after the relevant reinsurance effect. | Reinsurance structure and retention can change independently of customer demand. |
| Customer or policy indicators | Operational context for acquisition, retention and monetization. | These are not recognized revenue; connect them to premium, retention and results. |
Understand what reinsurance does to growth rates
Gross measures show premium volume before ceded reinsurance; net measures show the effect after ceded reinsurance under the company’s definition. A change in reinsurance arrangements or retention can therefore make GWP and net-premium growth diverge, even when underlying policy demand has not moved by the same amount.
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For example, Lemonade defines net earned premium as gross written premium earned over the policy period less the earned portion ceded to reinsurers. It cautions that gross earned premium should not replace net earned premium, total revenue or another GAAP measure. When presenting gross and net trends together, explain material changes in cession and use the company’s definitions rather than assuming labels are standardized. The definitions and cautions appear in Lemonade’s FY2025 Form 10-K.
Build a metric bridge instead of relying on one percentage
A useful reporting view places recognized revenue alongside the operating measures that help explain it. Show the components and definitions, not just headline growth rates.
- Total revenue: report the financial-statement total and identify its components.
- Insurance revenue or earned premium: name the accounting regime and gross/net basis.
- Written premium: define GWP or the company’s equivalent, including whether it covers assumed business or adjustments.
- Net premium: show NWP or net earned premium as applicable, with the effect of ceded reinsurance and retention.
- Customer and policy measures: where reported, include net additions, policies per customer, average premium, renewal or retention, product mix and channel contribution.
- Profitability and acquisition quality: pair growth with underwriting or insurance-service results, acquisition costs and an appropriately defined loss or combined ratio.
Ratios also need definitions. The IFRS Foundation identifies the combined ratio as a key profitability measure for short-term insurance, but PwC’s April 2024 analysis of UK reporting found variation in whether companies used gross or net insurance revenue as the denominator and in how they treated non-attributable expenses. That limits comparisons unless the calculations are aligned. PwC’s findings describe its analyzed reporting sample, not all insurers. Its 2024 UK reporting analysis also found that over 80% of companies in the sample continued to refer to GWP and/or NWP; just under 40% disclosed GWP/NWP alone as a key financial metric, while almost 45% disclosed insurance revenue (or net insurance revenue) alongside GWP (or NWP).
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Read digital growth drivers alongside financial results
For a digital insurer, customer and policy measures can help explain how premium volume may develop, but they are operating indicators rather than substitutes for recognized revenue. Consider the path from acquisition to retained, monetized business:
- Acquisition and conversion: examine customer additions, marketing channels and policy conversion where the company reports them.
- Retention and renewal: assess whether acquired customers and policies persist into later periods.
- Monetization: look at average premium, policies per customer and cross-sell or upsell where disclosed.
- Mix and distribution: track product, geographic and channel changes that can alter premium and revenue patterns.
- Economics: compare acquisition costs and underwriting outcomes with the growth in retained business.
Lemonade says it views customers as an important performance metric because customer growth supports revenue, brand awareness, market penetration, cross-sell and upsell opportunities, and platform data. That is the company’s stated view, not a universal causal rule. Its FY2025 filing reported a 23% year-over-year increase in net added customers.
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Worked example: why one insurer can show several growth rates
Lemonade, Inc.’s FY2025 Form 10-K reports total revenue of $737.9 million, up 40% from $526.5 million in FY2024. The reported total included net earned premium, ceding commission income, net investment income, and commission and other income:
| Lemonade measure | FY2025 | FY2024 | Reported growth |
|---|---|---|---|
| Total revenue | $737.9 million | $526.5 million | 40% |
| GWP | $1,171.3 million | $929.0 million | 26% |
| NWP | $763.5 million | $415.1 million | 84% |
| Net earned premium | $536.3 million | $370.6 million | 45% |
The FY2025 total-revenue components were net earned premium of $536.3 million, ceding commission income of $122.7 million, net investment income of $37.8 million, and commission and other income of $41.1 million. The filing attributes GWP growth primarily to increased net added customers, as well as digital advertising and partnerships, geographic expansion and product expansion. It also says NWP and net earned premium reflected reinsurance effects. These figures illustrate why a report should name the measure and explain the relevant mix and reinsurance changes rather than presenting a single unlabeled “revenue growth” rate. Source: Lemonade, Inc., FY2025 Form 10-K.
Reconcile written premium to insurance revenue
A reconciliation helps readers see how a production KPI relates to recognized insurance revenue and what changed between periods. Hiscox Ltd.’s FY2025 results provide one example: insurance contract written premium was $4,979.0 million in 2025, compared with restated $4,703.7 million in 2024; insurance revenue was $4,883.7 million and $4,672.5 million, respectively. Hiscox says its written-premium KPI covers premiums on business incepting in the year with specified adjustments, and its tables reconcile that KPI to insurance revenue. The 2024 comparative was restated after DirectAsia moved into the “other” segment for consistent presentation. Those definitions and figures are specific to Hiscox’s reporting. Source: Hiscox Ltd., FY2025 results.
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Quick Recap
A practical reporting checklist
- Name the business, period and basis. State the entity or segment, reporting period, currency, geography and accounting framework.
- Define the top-line measure. Say whether the rate is for total revenue, insurance revenue, earned premium or another explicitly named measure.
- Calculate on comparable figures. Use the same definition and comparable prior-period data; disclose material restatements, perimeter changes, foreign exchange or policy changes.
- Show premium measures separately. Label GWP, NWP and earned measures, and state the gross/net basis and company definition.
- Explain reinsurance and mix. Identify material changes in cession, retention, product, geography or distribution that affect the rate.
- Reconcile and test quality. Bridge volume to recognized revenue where possible, then read customer and policy indicators alongside underwriting results, acquisition costs and defined profitability ratios.
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