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What does the amount of ceding company's retention indicate to the reinsurance underwriter when he assess facultative reinsurance offer?

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Question added by Mamoun elbaghir abdalla mhamad Eltayeb , Insurance agent / Producer , Albaraka Insurance Company
Date Posted: 2014/11/18
Mamoun elbaghir abdalla mhamad Eltayeb
by Mamoun elbaghir abdalla mhamad Eltayeb , Insurance agent / Producer , Albaraka Insurance Company

Ceding company's retention amount is simply indicate the following to the facultative reinsurance underwriter :-

A) The business insured is assumed good risk when company's retention be high.

B) vise Versa , the business insured is assumed bad risk when company's retention be in the low side.

                                                  Best regards.