Underwriting Loss. (A) Commercial Fund After the retentions and assignments under paragraph (4)(B), the amount of underwriting loss retained by the Company will be calculated within each State as the sum of the following:
(i) For that portion of the underwriting loss amount for which the company’s loss ratio exceeds 100 percent and is less than or equal to 160 percent, the Company will retain an amount of the underwriting loss equal to the product of the following:
(I) its retained net book premium;
(II) the lesser of the Company’s actual loss ratio or 160 percent, minus 100 percent; and
(III) the following percentage for the applicable State: State Group 1 50.0 percent State Group 2 50.0 percent State Group 3 50.0 percent State Group 4 40.0 percent
(ii) For that portion of the underwriting loss amount for which the company’s loss ratio exceeds 160 percent and is less than or equal to 220 percent, the Company will retain an amount of the underwriting loss equal to the product of the following:
(I) its retained net book premium;
(II) the lesser of the Company’s actual loss ratio or 220 percent, minus 160 percent; and
(III) the following percentage for the applicable State: State Group 1 20.0 percent State Group 2 20.0 percent State Group 3 20.0 percent State Group 4 20.0 percent
(iii) For that portion of the underwriting loss amount for which the company’s loss ratio exceeds 220 percent and is less than or equal to 500 percent, the Company will retain an amount of the underwriting loss equal to the product of the following:
(I) its retained net book premium;
(II) the lesser of the Company’s actual loss ratio or 500 percent, minus 220 percent; and
(III) the following percentage for the applicable State: State Group 1 5.0 percent State Group 2 5.0 percent State Group 3 5.0 percent State Group 4 5.0 percent
(iv) FCIC will assume 100 percent of that portion of the underwriting loss amount by which the Company’s loss ratio exceeds 500 percent.
(B) For the Residual Fund: The amount of national underwriting loss for all AIPs and that portion retained by the Company will be calculated as the sum of the following:
(i) For that portion of the underwriting loss amount for which the national loss ratio exceeds 100 percent and is less than or equal to 160 percent, the Company will retain an amount of the underwriting loss equal to the product of the following:
(I) the net book premium designated to the Residual Fund by all AIPs;
(II) the Company’s interest in premium and associated ultima...
Underwriting Loss a. After cessions under paragraph 6., the amount of underwriting loss retained by the Company will be calculated separately for each Fund within each State as follows:
i. When the loss ratio exceeds 100 percent but is less than or equal to 160 percent of the Company’s retained net book premium, the Company will retain the following percentage of the underwriting loss: (B) (C) (R) I. Commercial Fund 50.0 percent 50.0 percent 57.0 percent II. Developmental Fund 25.0 percent 25.0 percent 30.0 percent III. Assigned Risk Fund 5.0 percent - - - - - -
ii. In addition to the amount determined under clause i., when the loss ratio exceeds 160 percent but is less than or equal to 220 percent of the Company’s retained net book premium, the Company will retain the following percentage of the underwriting loss:
Underwriting Loss. After cessions under paragraph 6., the amount of underwriting loss retained by the Company will be calculated separately for each Fund within each State as follows:
i. When the loss ratio exceeds 100 percent but is less than or equal to 160 percent of the Company’s retained net book premium, the Company will retain the following percentage of the underwriting loss:
Underwriting Loss. Amount by which Claims, taxes and fees exceed Net Earned Reserve for Qualifying Contracts.
Underwriting Loss. 181 UNDERWRITING RESULTS BY SEGMENT The following table summarizes written premiums, underwriting results, statutory combined ratios and adjusted combined ratios (as described in the footnote to the table) for each of St. Paul Re's business segments for the last three years. These segments are managed in a carefully coordinated fashion with strong elements of centralized control. As a result, management monitors and evaluates the financial performance of these segments principally based on their underwriting results. Following the table are detailed analyses of each segment's results. SIX MONTHS ENDED JUNE 30, YEAR ENDED DECEMBER 31, ---------------- -------------------------- 2002 2001 2001 2000 1999 ------ ------ ------ ------ ------ ($ IN MILLIONS) NORTH AMERICAN CASUALTY Net premiums written .......................... $ 228 $ 296 $ 667 $ 340 $ 262 Net premiums earned ........................... 271 261 588 319 245 Losses and loss adjustment expenses ........... 230 274 584 261 61 Underwriting expenses ......................... 91 96 219 134 109 ------ ------ ------ ------ ------ Underwriting gain (loss) ...................... $ (50) $ (109) $ (215) $ (76) $ 75 ====== ====== ====== ====== ====== Combined ratio ................................ 117.9% 141.4% 135.4% 124.9% 68.8% Adjusted combined ratio* ...................... 115.3% 142.6% 131.5% 131.4% 82.2% NORTH AMERICAN PROPERTY Net premiums written .......................... $ 110 $ 75 $ 216 $ 170 $ 207 Net premiums earned ........................... 125 75 216 204 196 Losses and loss adjustment expenses ........... 74 36 381 133 153 Underwriting expenses ......................... 35 33 67 72 71 ------ ------ ------ ------ ------ Underwriting gain (loss) ...................... $ 16 $ 6 $ (232) $ (1) $ (28) ====== ====== ====== ====== ====== Combined ratio ................................ 88.0% 92.8% 207.3% 104.6% 112.6% Adjusted combined ratio* ..................... 85.1% 127.6% 116.9% 122.2% 134.8% INTERNATIONAL Net premiums written .......................... $ 174 $ 174 $ 248 $ 145 $ 160 Net premiums earned ........................... 120 108 242 188 160 Incurred losses and loss adjustment expenses .. 52 25 289 128 102 Underwriting expenses ......................... 28 30 62 70 79 ------ ------ ------ ------ ------ Underwriting gain (loss) ...................... $ 40 $ 53 $ (109) $ (10) $ (21) ====== ====== ====== ====== ====== Combined ratio ................................ 62.5% 45.5% 143.8% 111.6...
Underwriting Loss. The excess of Losses Incurred, Commission Expense, Ceding Fee, and Excise Taxes over Earned Premium.
Underwriting Loss
