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Insurance vocabulary · Reinsurance

Ceding company

Meaning in insurance, with examples

nounAdvanced term

In insurance, ceding company means: An insurance company that passes, or cedes, part of its risks to a reinsurer. It is also called the cedant.

In Turkish: devreden şirket, reasürans alan sigorta şirketi

How it is used

Used in reinsurance contracts and meetings. The ceding company cedes premiums and claims to reinsurers under its treaties and keeps its retention. The verb is 'cede' and the noun for the transfer is 'cession'.

Example sentences

  1. The ceding company keeps 30 percent of each risk and cedes the rest to reinsurers.

  2. Reinsurers analysed the ceding company's claims data before renewing the treaty.

Common collocations

  • ceding company's retention
  • cede premium
  • cession
  • ceding commission
  • reinsuranceInsurance bought by insurance companies to pass part of their risks to another company, so that very large or numerous losses do not threaten them.
  • reinsurerA company that insures insurance companies, accepting part of their risks in return for part of the premium.
  • retentionThe part of a risk or loss that an insurer keeps for its own account instead of passing it to reinsurers.
  • quota shareA proportional reinsurance arrangement in which the insurer and reinsurer share the premiums and claims of every policy in a fixed percentage.

More terms: Reinsurance

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This page explains English vocabulary for learners. It is not financial advice.