Change of Reinsurer's Share

Change of Reinsurer's Share

In some circumstances your XL Treaty Reinsurer(s) may change its share during an Insured Period. The change can take effect from the Insured Period from date or as part of an amendment in share condition.

If bookings (premium and/or claim) have been made in SICS before the change takes place, the system will automatically adjust the bookings on the placement as follows:

Edit share from Insured Period from date: Changes in share will give an immediate effect on already booked amounts (not considering any system parameters).

Edit share as part of amendment: The system automatically adjusts the bookings on the placement according to the new share. If your System Administrator has activated the ‘Distribute RP Figures on Multiple Periods’ functionality retroceded figures are distributed according to RP shares defined on all effective periods within an Insured Period. When system parameter is ‘cleared’, the distribution is done according to the RP shares entered on the newest effective period only.

Example 1 - Changes in share

Non-Prop OCC/Insured Period: 01.01.2006-31.12.2006

Claim Basis: Losses Occurring

Placement at t0: Reinsurer 1 = 75% / Reinsurer 2 = 25%

Bookings on OCC:

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Bookings on Placement at t0:

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The Reinsurers' share is changed with effect from 01.01.2006.

Placement at t1: Reinsurer 1 = 100% / Reinsurer 2 = 0%

Bookings on Placement at t1:

inset_1202748.jpg

Example 2 - Share amendment

Non-Prop OCC/Insured Period:01.01.2006-31.12.2006

Claim Basis: Losses Occurring

Placement at t0: Reinsurer 1 75% / Reinsurer 2 25%

Bookings on OCC:

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Bookings on Placement at t0:

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The Reinsurers' Share Condition is amended and changed with effect from 01.04.2006.

Placement at t1: Reinsurer 1 100% / Reinsurer 2 0%

Bookings on Placement at t1:

inset_702754.jpg

  • Reversal and split on amendment due to amended share condition
    ** Adjustment booking due to changed share

Note! The Placement Complete flag on the Outward Cedent’s Contract must be cleared before making changes in share of the Retrocessionaire Participations. The placement of every effective period of the OCC must total 100% in order to set the Placement Complete flag.