Rate

Percentage rate (usually of the premium income) of the reinsured portfolio which is to be paid to the reinsurer as reinsurance premium under a non-proportional reinsurance treaty.

Reinsurance

Passing on of a primary insurer's or reinsurer's risks to a reinsurer.

Reinsurer

Company which accepts risks or portfolio segments from a direct insurer or another reinsurer in exchange for an agreed premium.

Reserve ratio

Ratio of (gross or net) technical provisions to the (gross or net) premiums.

Retention

The part of the accepted risks which an insurer/reinsurer does not reinsure, i.e. shows as net (retention ratio: percentage share of the retention relative to the gross written premium).

Retrocession (also: Retro)

Ceding of risks or shares in risks which have been reinsured. Retrocessions are ceded to other risk carriers (retrocessionaires) in exchange for a pro-rata or separately calculated premium (cf. Gross/Retro/Net.

Risk, insured

Risk that can lead to the occurrence of a loss. The insured risk is the subject of the insurance contract.