View source for Definition:Written line

📝 '''Written line''' is the percentage of risk that a [[Definition:Lloyd's syndicate | syndicate]] or [[Definition:Insurance carrier | insurer]] commits to on a [[Definition:Slip | slip]] or [[Definition:Placing document | placing document]] in a [[Definition:Subscription market | subscription market]], representing that participant's share of the total [[Definition:Premium | premium]] and [[Definition:Loss | losses]] before any [[Definition:Signing down | signing-down]] adjustments. In [[Definition:Lloyd's of London | Lloyd's]] and similar co-insurance markets, a single risk is rarely borne by one carrier; instead, multiple participants each "write a line" — say 10%, 20%, or 5% — until the slip is fully subscribed or oversubscribed.

🔢 When the aggregate of all written lines exceeds 100%, the [[Definition:Broker | broker]] and the lead [[Definition:Underwriter | underwriter]] typically sign the slip down proportionally so that every participant's share is reduced to fit a 100% total. The initial written line therefore differs from the [[Definition:Signed line | signed line]], which reflects each participant's final, adjusted share. For example, if a syndicate writes a 25% line but the slip closes at 125% total, its signed line after proportional reduction would be 20%. This distinction matters for [[Definition:Reserving | reserve]] calculation, [[Definition:Bordereaux | bordereaux]] reporting, and accurate allocation of [[Definition:Premium income | premium income]] across participants.

📐 Understanding the relationship between written and signed lines is fundamental for anyone operating in subscription or [[Definition:Co-insurance | co-insurance]] markets. Oversubscription can be a positive signal — it indicates strong market appetite for the risk — but it also means each participant ends up with less exposure than initially expected, which can affect an [[Definition:Underwriting | underwriter's]] portfolio construction and [[Definition:Capacity management | capacity planning]]. Accurate tracking of written versus signed lines feeds directly into [[Definition:Management accounting | management reporting]], [[Definition:Solvency | solvency]] calculations, and [[Definition:Reinsurance | reinsurance]] cession decisions.

'''Related concepts'''
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* [[Definition:Signed line]]
* [[Definition:Subscription market]]
* [[Definition:Slip]]
* [[Definition:Lloyd's of London]]
* [[Definition:Signing down]]
* [[Definition:Co-insurance]]
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