Gross vs Net

corysmithm

Silly question but just want to clarify...

There are a lot of instances where we mention gross and net reserves. Is net always referring to net of any applicable reinsurance or are there other things that reserves can be net of?

Thanks in advance!

graham

Well, that is a very important point. In general, net versus gross could refer to:

• reinsurance
• salvage & subrogation
• catastrophes

But here it refers to reinsurance. The text doesn't always make that clear (and I suppose I didn't either because I'm so used to it in this context.)