Published: | Updated: February 4, 2018

Definition - What does Retrocessionaire mean?

A retrocessionaire is a reinsurance company that insures other reinsurers.

Insuranceopedia explains Retrocessionaire

A retrocession is a transaction in which a reinsurer cedes to another reinsurer (the retrocessionaire) part of the reinsurance the former has assumed.

Reinsurance companies cede risks to retrocessionaires in order to reduce their net liability on individual risks. This helps them avoid catastrophic losses, stabilize financial ratios, and obtain additional underwriting capacity.

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