Solving Problems Consider a portfolio of an insurance company that consist of an insurance policy A with an insured sum of 400 000 SAR and an insurance policy B with an insured sum of 100 000 SAR. PART 1: For insurance policy A, the insurance company has signed a contract with a reinsurer to share gains and losses with fixed percentages. Thus, the reinsurer assumes an agreed fixed quota (percentage) of all insurance policies of 25%. This quota determines the distribution of liabilities, premiums and losses between the direct insurer and the reinsurer. 1)Calculate direct insurer's retention. Premium is equal to 2% of the sum insured. Calculate the total premium? ii)Calculate the premium kept by the insurer. 1)Calculate the share of the premium received by the reinsurer. V)Knowing that the loss amount is equal to 100,000. Calculate the loss supported by both insurer and reinsurer