PROCEEDINGS May 15, 16, 17, 18, 2005 - Casualty Actuarial Society

558 ARCHITECTURE FOR RESIDENTIAL PROPERTY INSURANCE RATEMAKINGEXHIBIT 4A-Florida Insurance CompanyHomeowners Rates Effective 1/1/2004Fixed Reinsurance Cost ProvisionItem Source Description Amount[1] Exhibit 5 Direct Earned Premium 46,105,811[2] Exhibit 5 Private Cat Subject Premium 40,573,114[3] Exhibit 5 Modeled Hurricane Gross Annual Losses 10,353,920[4] Exhibit 5 Private Cat Reinsurance Premium 9,385,801[5] Exhibit 5 Public Cat Reinsurance Premium 3,820,128[6] accounting Private Cat Retention % SMP 10%[7] accounting Private Cat Layer Coverage Level 95%[8] ([3] ¡ [6] £ [2]) £ [7] Reinsured Portion of Loss Cost 5,981,778[9] [4] + [5] ¡ [8] Implied Reinsurance Expenses 7,224,150[10] [9]=[1] Provision for Fixed Reinsurance Costs 15.7%[11] [9]=[3] Risk Load as % of Gross Loss Cost 69.8%