The portion of gross losses borne by reinsurers under the applicable treaties.
Ceded losses are the amounts reinsurers must pay the cedant under the treaties. Calculation depends on program type: under quota share the reinsurer participates proportionally in each loss; under XL it only responds above the retention. Net losses = gross losses − ceded losses. Recovery quality depends on reinsurer solvency, hence the importance of panel diversification and counterparty risk monitoring.
5 XS 5 M EUR treaty, 9 M EUR loss: ceded losses = 4 M EUR (5–9 M tranche), net losses = 5 M EUR (retention).
ceded losses, recouvrements réassurance, reinsurance recoveries