Definition:Net written premiums: Difference between revisions

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📐 The ratio of net to gross written premiums is the retention ratio, a standard disclosure that shows in one number how much risk a carrier keeps versus lays off. Retention varies widely by line and strategy: a personal-lines insurer may retain the large majority of its premium, while a catastrophe-exposed specialty writer or a fronting company may cede most of it. The measure is expressed in currency, appears across statutory and management reporting worldwide, and, like its gross counterpart, remains a disclosed KPI for IFRS 17 reporters even though premiums no longer appear on the face of the income statement. Earned over the coverage period, net written premium becomes the net earned base used in loss-ratio calculations under premium-based frameworks.