Loss ratio computed on net-of-reinsurance losses and premiums, reflecting the cedant's actual performance after risk transfer.
The net loss ratio divides net losses (gross less reinsurance recoveries) by net premiums (gross less ceded premiums). It measures the cedant's effective loss experience after its program responds. Comparing net to gross loss ratio quantifies reinsurance effectiveness: a sharply lower net ratio in a catastrophe year confirms the XL program has worked. Conversely, if both ratios are close, reinsurance was barely triggered. The net loss ratio can paradoxically exceed the gross if the cedant has ceded profitable treaties (e.g. in quota share it cedes the good years too).
After Cyclone Belal: gross loss ratio 145%, net loss ratio 82% → the cat XL program absorbed 63 ratio points.
ratio de sinistralité net, loss ratio net, net claims ratio