The sum of a company’s net premium written to policyholder surplus and net liabilities to policyholder surplus. This ratio measures the combination o a company’s net exposure to pricing errors in its current book of business and errors of estimation in it net liabilities after Reinsurance, in relation to policyholder surplus.

Net liabilities expressed as a ratio to policyholders surplus. Net liabilities equal total liabilities less conditional reserves, plus encumbrances on real estate, less the smaller of receivables from or payable to affiliates. This ratio measures company’s exposures to errors of estimation in its loss reserves and all other liabilities. Loss reserve leverage is generally the key component of net liability leverage. The higher the loss reserve leverage the more critical a company’s solvency depends upon maintaining reserve adequacy.

The amount liability of Company is prepared to expose to loss for its own account.
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REINSURANCE: The amount of insurance the primary insurer carries on a risk after deducting reinsurance from its “gross” line.
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The maximum limit an insurer or reinsurer is willing to accept after taking credit for reinsurance coverage. Such limits are usually expressed per insured, per line of insurance, etc. See Gross line.
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UK: US term meaning the amount of risk that an insurer retains for his own account without reinsurance. More widely a ‘net line’ underwriter accepts business mainly with the intention of ceding all or nearly all of it by way of reinsurance. The underwriter effectively acts in effect as a fronting company or agent.

In reinsurance, this term refers to the amount of insurance retained by the original insurer on a particular risk in a surplus treaty. This term can also be used to refer to the maximum amount of loss an insurer will be exposed to unless they seek reinsurance.

The amount of a loss, after deductions for salvage, other insurance, and any subrogation, that an insurer is responsible for.
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The amount of loss sustained by an insurer after giving effect to all applicable Reinsurance, salvage and subrogation recoveries.
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REINSURANCE: The amount of loss sustained by an insurer after making deductions for all recoveries, salvage and all claims upon reinsurers, with specifics of the definition derived from the reinsurance agreement. See also Net Retained Liability.
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UK: The amount of the loss absorbed by an insurance company after deducting all recoveries from reinsurance, subrogation and salvage. These net retained losses can be funded internally out of cash flow or specially dedicated assets. Externally they may be funded out of lines of credit or, in the case of proprietary companies, the issue of new securities.
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The portion of a loss the insurer is left with after all reinsurance, salvage, or subrogation coverage.

A general term that can have many different meanings. This term can refer to a premium with the amount of the agent’s commission deducted. This term can also mean the portion of the premium required to pay expected future losses. This term can also refer to the premium amount with the amount of dividends that have been appointed to pay part of the premium deducted.
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In health Insurance, portion of the gross premium needed to pay benefits provided by the Insurance contract, with no allowance for the Insurer’s expenses or profit. The property liability equivalent is “pure premium.”
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Premium less expense, such as commission.
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The amount of the premium that is left after the subtraction of some or all permitted deductions such as brokerage and (for certain types of business) profit commission.
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Total written premium or earned premium less provision for ceded reinsurance premium and, on occasion, certain expenses such as commissions. Pure premium (01) The value of losses and in some cases LAE or ALAE per unit of exposure. (02) The portion of premium that is required to cover losses with or without LAE or ALAE.

The adjustment of net premiums written for the increase or decrease of the company’s liability for unearned premiums during the year. When an insurance company’s business increased from year to year, the earned premiums will usually be less than the written premiums. With the increased volume, the premiums are considered fully paid at the inception of the policy so that, at the end of a calendar period the company must set up premium representing the unexpired terms of the policies. On a decreasing volume, the reverse is true.

Represents gross premium written, direct and reinsurance assumed, less reinsurance ceded.