Capital Management
Collateral
Definition
Assets pledged to secure reinsurance obligations, protecting cedents from counterparty default.
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Related Terms
Regulation
Letters of Credit
Bank guarantee securing reinsurance obligations, allowing non-admitted reinsurers to provide statutory credit to cedents.
Reinsurance Operations
Funds Held
Amounts withheld by the cedent from reinsurance recoverables, typically earning interest. Used for security or as per treaty agreement.