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.
