Proportional Treaties
Shares premiums and losses between the insurer and reinsurer based on an agreed proportion.
Treaties
Protect Your Portfolio With Treaty Reinsurance
Reinsurance treaties give insurers ongoing protection across defined portfolios or classes of business. They help manage volatility, accumulation and capacity, supporting stable and sustainable underwriting.
Risk Transfer Solutions
Capacity Optimisation
Portfolio Protection
What Is Treaties?
Understanding Treaties
Treaty reinsurance is an arrangement where an insurer transfers an agreed portion of its risks to a reinsurer under defined terms, helping manage exposures, enhance underwriting capacity and achieve stability.
What Does It Cover?
- Proportional Treaty
- Non-Proportional Treaty
- Quota Share
- Surplus Share
- Excess of Loss
Example:
If an insurer experiences a covered loss within its treaty portfolio, the reinsurer responds according to the agreed treaty structure, retention, and limits, subject to the treaty terms and conditions.
Coverage Components
Comprehensive Reinsurance Solutions
Non-Proportional Treaties
Provides protection when losses exceed an agreed retention or attachment point.
Quota Share
Transfers a fixed percentage of premiums and losses to the reinsurer.
Surplus Share
Provides additional capacity for risks that exceed the insurer's retained capacity.
Excess of Loss
Provides protection against losses exceeding the insurer's predetermined retention.
Catastrophe Excess of Loss
Protects against accumulated losses from a catastrophic event, subject to the agreed attachment point and limits.
Advisory Support
Strengthen Your Reinsurance Programme
We understand your portfolio and risk appetite. Our specialists structure and place treaty solutions aligned with your needs.
- 1.
Portfolio Risk Assessment
We understand your portfolio, exposure profile and risk appetite to identify appropriate reinsurance requirements.
- 2.
Treaty Structure & Design
Our specialists help structure suitable treaty arrangements, including limits, retentions, attachment points, and participation levels.
- 3.
Reinsurer Placement
We coordinate with suitable reinsurers to secure appropriate capacity and competitive treaty terms.
- 4.
Treaty Negotiation & Support
Our specialists support treaty negotiations, documentation, and coordination with reinsurers throughout the placement process.
- 5.
Annual Treaty Review & Renewal
Regular reviews keep your treaty programme aligned with portfolio growth, exposure changes and business strategy.
Strengthen Your Reinsurance Strategy
We help structure treaty solutions designed around your portfolio, capacity requirements, and risk appetite.
Frequently Asked Questions
Answers to Common Insurance Queries
Treaty structure should reflect the composition and volatility of the underlying portfolio, with retention, attachment points, limits, layers and reinstatements calibrated against historical loss experience, exposure concentration and the cedant's risk appetite.
Changes in business mix, geographical concentration, limits, inflation, catastrophe exposure or underwriting strategy can alter the portfolio's risk profile and may require corresponding changes to treaty capacity, pricing, attachment points and terms.
Equirus Raghnall analyses portfolio data, historical claims, exposure concentrations, existing treaty performance and forward-looking business plans to develop a reinsurance structure aligned with the cedant's risk appetite and capital objectives.
The placement considers programme architecture, retentions, layers, reinstatements, exclusions, event definitions, claims provisions, wording and reinsurer security alongside pricing and capacity.
