Trust Well Insurance Company, Mumbai entered a reinsurance contract with Maxwell Insurance, Dubai with the following details: Quota of Insurance Business Share: 60%, Ceding Commission = 30% of Ceded Premium, Gross Premiu

CS Professional · Banking and Insurance - Laws and Practice · PYQS · December 2025
Trust Well Insurance Company, Mumbai entered a reinsurance contract with Maxwell Insurance, Dubai with the following details: Quota of Insurance Business Share: 60%, Ceding Commission = 30% of Ceded Premium, Gross Premium = ₹ 2 crores and Gross Claims = ₹ 1.20 Crores. Calculate: Net Underwriting result for the Insurer.

Answer & Explanation:

Net Underwriting result for the Insurer: Premium = ₹ 2 – ₹ 1.2 + ₹ 0.36 = ₹ 1.16 Crores. Net Claims = ₹ 1.20 – ₹ 0.72 = ₹ 0.48 Crores. Underwriting Result = ₹ 1.16 – ₹ 0.48 = ₹ 0.68 Crores.

Topics: Reinsurance

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