Reinsurance transacted primarily to achieve financial goals, such as capital management, tax planning, or the financing of acquisitions.
A special form of limited liability insurance aimed at the financial and strategic goals of the reinsured rather than the risk transfer goals.
Reinsurance with limited potential for profits and losses; the primary objective is to strive for risk equalization over time and to stabilize the cedant's balance sheet.
A reinsurance transaction that provides financial benefits to the cedant as its primary purpose.
A form of reinsurance which considers the time value of money and has loss containment provisions. One of its objectives is the enhancement of the cedant's financial statements or operating ratios, e.g., the combined ratio; loss portfolio transfers; and financial quota shares are examples.
Reinsurance coverage that allows a ceding insurance company to improve its financial position through the timing and the method of risk transfer. See also ceding company and reinsurance.
Reinsurance for a single premium based mainly on the net present value of future known or expected losses.
Financial Reinsurance, also known as 'fin re', is a form of reinsurance which is focused more on capital management than on risk transfer. In the non-life segment of the insurance industry this class of transactions is often referred to as finite reinsurance.