Bespoke treaties combining risk transfer with management of the cedant's capital or earnings.
Structured reinsurance covers treaties built to order to meet a balance sheet objective as much as a protection need: smoothing earnings, releasing regulatory capital, funding growth, supporting an acquisition or protecting a disposal. It combines known building blocks, quota share, aggregate, multi-year, experience account and corridor, assembling them to produce a precise profile. The problem it solves is the inadequacy of standard forms: a cedant seeking to cut its capital requirement by twenty percent without giving up margin has no off-the-shelf treaty that answers, and bespoke assembly is the only route. These solutions demand joint competence in underwriting, accounting and prudential regulation, and their review always runs two parallel tests: genuine risk transfer, which governs accounting characterization, and the prudential effect sought, which must withstand the supervisor's analysis. A structure that optimizes one while losing the other is worthless.
A fast growing cedant reaches a solvency ratio of 142 percent in 2026, below its 160 appetite. Rather than an 85 million euro capital raise, it puts in place a 25 percent solvency quota share with a corridor and a sliding scale commission. The ratio recovers to 168 percent at a net annual cost of 6.2 million, against an estimated cost of capital of 9.4 million.
Structured reinsurance, Solutions structurées, Structured solutions, Réassurance sur mesure