Net ALE Worksheet

FORM · RISK-04

Gross exposure, adjusted for deductible & co-insurance

Property

Replacement Cost Value (RCV)True full replacement value of the asset

Stated Value on SOVWhat's actually declared on the Statement of Values

Exposure Factor (EF)% of asset value lost in a single occurrence

Occurrence

Annualized Rate of Occurrence (ARO)Expected events per year (0.05 = 1-in-20-year event)

Policy terms

DeductiblePercentage of RCV, per occurrence

Co-insurance requirementMinimum % of RCV that must be declared

Result

Base SLE (RCV × EF)—

Unadjusted ALE (SLE × ARO)—

Deductible per occurrence—

Co-insurance payout ratio—

Adjusted claim payout—

Net retained loss / occurrence—

Net ALE (annual)—

Reading Adjust the fields above to see how net exposure compares to a premium quote.

Worked example only — verify deductible, co-insurance, and SIR language against the actual policy declarations page.