Retained limit is the maximum amount of risk an insurer chooses to keep on an individual life, policy, or occurrence before reinsurance applies. In life insurance, it often refers to the highest net face amount a company will retain after ceding excess under treaty or facultative arrangements. Retained limits are shaped by company size, capital position, risk appetite, and reinsurance market conditions. Setting appropriate retained limits helps carriers avoid overconcentration of risk while still writing meaningful amounts of coverage for producers and clients.

In practice, underwriting manuals and internal memos specify retained limits by product, age, and risk class. When proposed coverage exceeds the retained limit, underwriters automatically allocate the excess to reinsurance or seek facultative capacity. Advisors hear about retained limit when carriers explain why additional coverage must go to a different insurer or why jumbo case coordination is needed. Changes in retained limits-up or down-can signal shifts in corporate risk tolerance or reinsurance relationships. Understanding retained limit helps advisors plan carrier splits on large cases and set realistic expectations about capacity and underwriting timing.