Treaty Reinsurance
This reinsurance addresses underwriting and capital objectives on a portfolio level, allowing more effective management of the combination of premium growth, return on capital and rating agency interests. We provide our clients with flexible treaty programs, structured and priced to align client’s challenges and goals which include premium growth, rating agency interests and return on capital. Following consultation with all parties in the agreement, we structure the following treaties:
Proportional Treaties
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Facultative Obligatory (Fac-Oblig)
A reinsurance contract under which the ceding company may or may not cede exposures or risks of a defined class to the reinsurer, which is obligated to accept if ceded.
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Surplus Treaty
Reinsurance treaty in which the ceding company determines the maximum loss that it can retain for each risk in the portfolio.
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Quota Share Treaty
A reinsurance contract in which the insurer and reinsurer share premiums and losses according to a fixed percentage.
Non-Proportional Treaties
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Per Risk Excess of Loss
A reinsurance cover in which, subject to a specified limit, indemnifies the reinsured company against the amount of loss in excess of a specified retention with respect to each risk involved in each loss
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Catastrophe Excess of Loss
A reinsurance cover that protects the insurance company against an accumulation or aggregation of losses due to catastrophic events.
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Aggregate Excess of Loss
A reinsurance cover that stipulates participation by the reinsurer when aggregate excess losses for the primary insurer exceed a certain stated retention level.