What Does Reinsurance Recoverables to Policyholder Surplus Mean?

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

Reinsurance Recoverables to Policyholder Surplus

Reinsurance Recoverables to Policyholder Surplus

Reinsurance recoverable to policyholder's surplus refers to the method used to show how dependent the insurance company is to its reinsurer. This is done by calculating the amount given to policyholders by the insurance company and the amount provided by the reinsurers. When the calculation shows that the ratio is high, it means that reinsurance dependency is also high.

We hope the you have a better understanding of the meaning of Reinsurance Recoverables to Policyholder Surplus.

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