surplus relief (reinsurance)

Carla Peters

New Member
Field and topic:
I need to have the Spanish definition of the term "Surplus Relief".

The definition of the reinsurance term "surplus relief" the offsetting of unusual drains against policyholders' surplus. The reinsured recaptures equity in unearned premium reserves on the business ceded through the ceding commission allowed by the reinsurer against the gross premiums ceded.

Also it is an increase in the insurance company's surplus through financial reinsurance. The insurance companies are able to use the increase in capital to write more business while retaining reasonable operating ratios.

Sample sentence:
Reinsurance also provides an insurance company with surplus relief.
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  • lauranazario

    Español puertorriqueño & US English
    Hi Carla... and welcome to the forum.

    Here we have the financial report of Hannover Re (a leading reinsurance firm) and on page 54 the talk about the decrease in demand for contratos proporcionales cuota parte que sustituyan capital (contratos "surplus relief").

    Hope that helps.

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