A retrospective financial reinsurance providing cover for past losses that exceed loss reserves and loss portfolio transfer contracts on losses that are incurred but not reported (INBR) and the development on reported losses (IBNER). The premium reflects the net present value of the expected future ceded loss payment and a risk premium in respect of underwriting, timing and investments. The main benefit is that cover facilitates mergers and takeovers by removing the risk of adverse loss developments for the acquiring company.