Net retained loss
Net retained losses are losses retained by a ceding company (primary insurer) after netting out reinsurance contract losses and any associated inuring contract losses.
Reinsurance contract losses for purposes of the net retained calculation should be reduced by the % of insurers coinsurance and the amount of contract loss not placed should be added back.
Net Retained loss = Company Loss – (Contract Loss *Percent Placed) - Inuring loss
Note:
Contract loss has already net out the % of loss to the layer that insurers coinsurance is covering. So a layer with 1,000 limit and 5% insurers coinsurance would have max contract loss of 950.