Excess of Loss Reinsurance Archives

Insurance company managing its portfolio through underlying retention: Balance of kept and delegated risks

Understanding Underlying Retention in Reinsurance: Maximizing Profitability through Risk Management

August 18, 2025 FinanceFacts101 Insurance

Introduction to Underlying Retention Underlying retention is a vital concept within the reinsurance sector that refers to the amount of risk or liability assumed by an insurer after entering into a reinsurance agreement. Essentially, it represents the portion of the risk that the ceding company decides to retain and manage

A Comprehensive Guide to Understanding Treaty Reinsurance: Types, Advantages, and Differences from Facultative and Excess of Loss Reinsurance

August 9, 2025 FinanceFacts101 Insurance

Introduction to Treaty Reinsurance Treaty reinsurance refers to an agreement between an insurer (the ceding company) and a reinsurer, where the latter takes on the risk for all or a significant portion of the former’s underwritten risks for a given period. In this type of arrangement, the cedent transfers a

Understanding Gross Net Written Premium Income (GNWPI) in Insurance: Implications for Institutional Investors

November 25, 2024 FinanceFacts101 Business Finance

Introduction to Gross Net Written Premium Income (GNWPI) Gross net written premium income (GNWPI), also referred to as gross written premiums, is a critical metric for insurance companies that engage in reinsurance agreements. This term denotes the dollar amount of an insurer’s premiums used to determine its obligations to pay

Understanding Excess of Loss Reinsurance: Protecting Against Excessive Insurance Losses

September 6, 2024 FinanceFacts101 Insurance

What is Excess of Loss Reinsurance? Excess of loss reinsurance (EoL) represents a unique form of reinsurance where the reinsurer covers the ceding company for losses that surpass a predefined threshold or limit. A ceding company, an entity in the insurance industry that transfers its risks to a reinsurer, seeks