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Quota Share Reinsurance

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Quota Share Reinsurance
An agreement between an insurer and a reinsurer whereby the reinsurer pays an agreed-upon percentage of all losses the insurer sustains, regardless of type. The insurer compensates the reinsurer for this agreement.


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Existing and new quota share reinsurance placements will assure necessary commonality of interests among insurer and reinsurer and thus provide greater transparency of capital commitments for mortgage guaranty insurance buyers, regulators, rating agencies, and investors.
This operating support is demonstrated by a 100% quota share reinsurance contract with AIC for its countrywide business, excluding Florida, although North Light does not currently write business in Florida.
Harbor Point and Bay Point have entered into a quota share reinsurance agreement pursuant to which Harbor Point will cede to Bay Point 30% of certain lines of short-tail business written by Harbor Point for the 2006 and 2007 underwriting years.
 
 
 
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