Gross retention

The gross retention is the amount of risk retained by the insurer prior to any amount ceded to the first surplus agreement. If there is a quota share agreement in place, then the gross retention defaults to the coverage limit of the quota share treaty. For a specific risk, an insurer may choose to retain less risk than the treaty specifies by lowering the gross retention.

In the policy file, the Per Risk tab of the Reinsurance screen has an editable Gross Retention field. This value defaults to the Coverage Limit of the quota share treaty attached to this risk. If this risk does not have a quota share treaty, then the value defaults to the Max Retention of the first surplus treaty. The Coverage Limit and Max Retention are specified on the Reinsurance > Treaty screen.

You can modify the gross retention for each risk on a policy. The value can be less than or equal to the default value.

If you modify the value of Gross Retention:

For this risk only, the Limit for a quota share treaty is adjusted to the value of the new gross retention.
For each surplus treaty for this risk only, the Attachment point and Limit scale proportionally based on their start and stop lines by using the following formulas:
```
Attachment = Start Line * Gross Retention
Limit = Stop Line * Gross Retention
```
As always, the amount of reinsurance provided is:
```
Amount of reinsurance = Limit - Attachment
```
The ceded amount and proportional share are recalculated for all agreements in the list.