We also employ two measures to assess the effects of different reinsurance coverages on the insurer's underwriting profitability.
The first, called RPS, measures how much premiums the insurer retains for each A$1 of retained claims after reinsurance. The second measure shows the total amount of retained premiums after the deduction of the reinsurance premiums
13 and claim payments
of the insurer's retentions αij and Rij for each risk.