Financial reinsurance

{
  "id": "MLC-T-INS-001511",
  "term": "Financial reinsurance",
  "field": "Insurance and risk management",
  "definition": "A form of reinsurance where the primary motivation is capital management or balance sheet enhancement rather than the traditional transfer of insurance risk. The contract is structured to provide a ceding company with a predictable financial result, such as improving its surplus position, managing cash flow, or obtaining tax advantages. While some insurance risk must be transferred to qualify as reinsurance, the risk transfer element is often minimal compared to the financial objectives of the transaction.",
  "url": "https://mlchart.com/terminology/insurance/financial-reinsurance/"
}