The reinsurers deal with the ceding
companies, reinsurance intermediaries, multinational corporations and banks.
In Bellefonte, the 2nd Circuit decided that the monetary amount of "reinsurance accepted" set forth on the face of fairly common reinsurance facultative certificates capped the reinsurer's obligations, even with respect to the ceding
company's litigation expenses and costs in the underlying dispute, which can prove astronomical in many matters.
Adapts to short-term ceding
philosophy of the insurer;
The first issue addreses whether the ceding
enterprise should recognize a liability and the assuming enterprise should recognize an asset if the ceding
enterprise is obligated to pay the reinsurer amounts that would not have been required absent experience to date under the contract (for example, payments that would not have been required if losses had not been experienced).
Thus, captives or RRGs acting as reinsurers must be sensitive to offset rules to ameliorate the effect of the insolvency of a ceding
Fitch's ratings consider the transaction structure, the strength of the expected cash flows from the ceded blocks of business and the financial strength of the ceding
Identifying potential microinsurer ceding
companies involves many different factors, such as the microinsurer's experience in the particular country and its processes and experience with underwriting, claims and other aspects of the business.
Under current rules, Summers said, ceding
companies are penalized if they do not meet regulatory requirements.
insurers do indeed put themselves on the hook for fronted business, just as they do for risks which they retain or reinsure in a traditional manner.
RAM has not yet received information from certain of its ceding
companies with respect to the change in fair value of credit default swaps ceded to RAM.
Executing a reinsurance transaction on a funds-withheld basis is an effective way to mitigate the counter-party credit risk with a reinsurer, since the ceding
company retains the ceded premium (less an explicit or contractual margin) and related investment income.
About 60% of these respondents either make or strongly influence the final ceding
decision, according to the survey.
The business conducted by the issuer will be limited, consisting solely of the issuance of one or more series of the notes; the servicing of the various agreements entered into between the issuer and other parties, including the reinsurance agreements between the issuer and Chubb Group of Insurance Companies (the ceding
insurer) [NYSE: CB]; the swap agreement between the issuer and Goldman Sachs International (the swap counterparty); and other related agreements and activities.
insurer if the assuming reinsurer is authorized or accredited in the ceding
insurer's state of domicile--or, in some states, in at least one state.
The issue centers on how a company ceding
business treats premium timing differences between direct premium it receives and reinsurance premium it cedes when the reinsurance premium is paid less frequently than the direct premium.