Reinsurance Recoverables to Policyholder Surplus

Definition

  • A ratio used to measure how reliant an insurer's is on reinsurers to withstand potential exposures.

Synonyms
reinsurance recoverables to policyholder surplus ratio, recoverables to surplus

Related Terms and Acronyms

  • Ceding Party Definition,
    • In reinsurance, a ceding party is an insurance company that spreads liability to a reinsurer in order to lower risk.
  • Direct Written Premiums Definition,
    • All the premiums written by an insurer except those ceded to reinsurers.
  • Finite Reinsurance Definition,
    • A reinsurance arrangement where the reinsurer only takes on a limited amount of risk from the ceding party.
  • Lloyd's of London Company,
    • A market for insurance and reinsurance based in London, England where Lloyd's members, underwriters and financial backers can spread and share risk.
  • Policyholder Dividend Ratio Definition,
    • A ratio comparing the dividends paid to policyholders to net premiums earned by the insurer.
  • Policyholder Surplus Definition,
    • A method of determining an insurance company's relative financial strength by finding the difference between the company's assets and liabilities.
  • Premium-to-Surplus Ratio Definition,
    • A method used to determine an insurance company's financial stability.
  • Reinsurance Definition,
    • The process of one insurance company sharing liabilities from an insurance policy with another insurance company in order to lessen exposure, or in other words, insurance for insurers.
  • Reinsurance Ceded Definition,
    • The amount of insurance that is reinsured with another insurance company.
  • Reinsurer Definition,
    • An insurance company that provides coverage for a portion of another insurance company's risk.
  • Surplus Definition,
    • When an entity's income exceeds its expenses.
  • Underlying Retention Definition,
    • The liability an insurance company still retains after ceding liability to a reinsurer.
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