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Investments glossary

Underlying Retention


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Quotes of the day:

Everyone can get the gold of the Sun. (Tout le monde cueille l\'or du soleil)

— Charles de LEUSSE

Underlying retention is the net amount of risk or liability arising from an insurance policy or policies that is retained by a ceding company after reinsuring the balance amount of the risk or liability. The degree of underlying retention will vary depending on the ceding company’s assessment of the risks involved in retaining part of the policy liability and the profitability of the insurance policy.

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