Business Net Retention

Published: | Updated: October 9, 2017

Definition - What does Business Net Retention mean?

Business Net Retention refers to the number of policies that an insurance company has in its account, excluding those that have lapsed, been cancelled, or turned over to a reinsurer.

Insuranceopedia explains Business Net Retention

Business net retention is an indication of how strong an insurance company is. It means it has been able to keep a number of policies in its account while also managing the risks involved in holding them without the aid of reinsurance.

Business net retention is calculated by dividing the number of net premiums by the number of gross written premiums. Net premiums are those that the company has after deductions. Gross written premiums are those that have not yet factored in the cost of deductions, including the cost of reinsurance.

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