Quota Share Reinsurance

(redirected from Quota Share Treaties)

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.
References in periodicals archive ?
In 2011, Sirius gross written premiums decreased by around 20%, as a result of the restructuring and the commutation of quota share treaties with Esurance Insurance Company (a former subsidiary of Sirius ultimate parent, White Mountains Insurance Group, Ltd.
The difference from the breakeven result previously expected for the last three quarters of 2009 is due in large part to the renewal of the Company's excess of loss and third party quota share treaties on less favorable terms than the expiring treaties and lower than expected yields on the Company's investment portfolio.
Traditional life reinsurance provides the top 60 life insurers with fully underwritten, first-dollar, quota share treaties.
In 2011, Sirius' gross written premiums decreased by around 20%, as a result of the restructuring and the commutation of quota share treaties with Esurance Insurance Company (a former subsidiary of Sirius' ultimate parent, White Mountains Insurance Group, Ltd.
HG-WS and HDI-Gerling Industrie continue to provide HDI-GAIC with substantial internal financial support via significant facultative cessions and 95% quota share treaties, which have been in effect since July 1, 2008 and January 1, 2000, respectively.
The treaties are five year quota share treaties ceding 25 percent of premium, life volume, and paid claims to each reinsurer.
Ceding commission revenue, earned on our quota share treaties, totaled $2.
The ratings of HDI-GAIC largely reflect its solid risk-adjusted capitalization and the benefit of the explicit support provided through substantial internal reinsurance by its immediate parent, HDI-Gerling Welt Service AG (HG-WS) (Germany), and the immediate parent of HG-WS, HDI-Gerling Industrie Versicherung AG (HG-I) (Germany), via significant facultative cessions and 95% quota share treaties, which have been in effect since July 1, 2008 and January 1, 2000, respectively.
This is primarily due to the cancellation of quota share treaties with Sirius America and Esurance Insurance Company (a subsidiary of White Mountains Insurance Group Ltd.
The ratings of HDI-GAIC largely reflect its solid risk-adjusted capitalization and the benefit of the explicit support provided through substantial internal reinsurance by HDI-Gerling Industrie Versicherung AG (HGI) (Germany) and its subsidiary and immediate parent of HDI-GAIC, HDI-Gerling Welt Service AG (HGWS) (Germany), via significant facultative cessions and 95% quota share treaties, which have been in effect since January 1, 2000 and July 1, 2008, respectively; a retroactive reinsurance cover with HGI that covers any net adverse development on policies incepting prior to January 1, 2000; and the implied support of future parental commitment.
Goldstein also stated that, "KICO completed its Reinsurance placements for the Personal and Commercial lines, including quota share treaties with the same reinsurance carriers as in the prior treaties.
Second, the execution of quota share treaties between Majestic and third party reinsurers resulted in Majestic ceding 47% of earned premiums effective July 1, 2009, as compared to Majestic ceding 40% under a quota share treaty that was in place in the third quarter of 2008.