What Does Ceding Company Mean?

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What does Ceding Company mean? Read on to discover the definition & meaning of the term Ceding Company - to help you better understand the language used in insurance policies.

Ceding Company

Ceding Company

A ceding company is an insurance company that has shared or passed risks on to another company in a transaction called reinsurance. As compensation, the ceding company pays a premium to the reinsurance company.

We hope the you have a better understanding of the meaning of Ceding Company.

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