Treaty account

2026, textbook case: accounts that arrive 147 days after quarter end, against 62 days for the median of the reinsurer's portfolio, earn the cedant a 410,000 euro loading at renewal. A treaty account is the statement the cedant sends the reinsurer at agreed intervals, generally quarterly. It lists ceded premium, commissions, paid losses, reserve movements and the net balance payable one way or the other. It is the accounting instrument of the relationship and, on a proportional treaty, the only view the reinsurer has of its business. It solves a problem of information flow: the cedant holds all the data, and without a standardized periodic statement the reinsurer could neither reserve, nor close, nor manage its retrocession. The quality and timeliness of accounts therefore weigh in cedant selection as much as loss experience. When accounts arrive nine months late, the reinsurer has to estimate, and it loads its margin for uncertainty. Well run treaties set deadlines and late payment interest. Electronic exchange has cut delays without removing differences of definition.