REINSURANCE: A type of reinsurance which refers to all the risks of the reinsurance transaction. For example, if one company reinsurers all of another’s outstanding Automobile business, the reinsuring company is said to assume the, “portfolio” of Automobile business and it is paid the total of the unearned premium on all the risks so reinsured (less some agree commission).
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In transactions of reinsurance, it refers to all the risks of the reinsurance transaction. For example, if one company reinsures all of another’s outstanding automobile business, the reinsuring company is said to assume the portfolio of automobile business and it is paid the total of the unearned premium on all the risks so reinsured (less some agreed commission).
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UK: The transfer by cession of an entire portfolio of policies from a cedant to a reinsurer. It may be prompted by the cedant wishing to exit a particular line of business. Alternatively the reinsurer assumes a percentage of the entire portfolio of the cedant’s business in a selected line or all lines of business.
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REINSURANCE: The transfer of portfolio via a cession of reinsurance; the reinsurance of a runoff. Only policies in force (or losses outstanding) are reinsured, and no new or renewal business is included. Premium or loss portfolios, or both, may be reinsured. The term is sometimes applied to the reinsurance by one insurer of all business in force of another insurer retiring from an agency from a territory or from the insurance business entirely.