Net premiums written is obtained by totaling (adding or subtracting as indicated) items ① to ④ listed to the right, and plainly shows the income earned from the non-life insurance business (excluding deposit premiums from policyholders).
 

　  ①Direct premiums written
−) ②Reinsurance premiums ceded
+)  ③Reinsurance premiums written
−) ④Retrocession premiums ceded
　  ⑤Net premiums written
　 (Income statement item)