Retrocessionaire

What Does Retrocessionaire Mean?

A retrocessionaire is a reinsurance company that provides insurance to other reinsurers.

Insuranceopedia Explains Retrocessionaire

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

Reinsurance companies cede risks to retrocessionaires to reduce their net liability on individual risks. This helps mitigate the potential for catastrophic losses, stabilize financial ratios, and increase underwriting capacity.