Confused on the calculation of GWP for Company A. First I found NWP by multiplying Total NWP by pooling %. Then I used A(lead) GWP = Company A DWP + Company B NWP or 6,350 + 1470 = 7,820. Why is this incorrect? Are the non-Schedule P GWP formulas different from the gross L&LAE formulas?
I see that you followed the formulas laid out in the wiki. There, the term “Net” means “Net before pooling”. Since there is no outside reinsurance, Direct.B = Net.B = 1000. Using the wiki formula, Gross.A = Direct.A + Net.B = 6350 + 1000 = 7350.