reinsurance commutation

Reinsurance Commutation Expert

We specialize in the estimation and negotiation of reinsurance commutations. Our actuaries have worked on well over 100 commutations and can provide the following reinsurance services:
  • Review of reinsurance contract to determine coverage
  • Actuarial analysis of ceded outstanding loss reserves
  • Discounting of cash flows
  • Preparation of commutation estimates under various scenarios
  • Preparation and presentation of commutation proposal
  • Commutation negotiation
  • Expert witness for reinsurance disputes
A commutation is the termination of a reinsurance contract as mutually agreed by the ceding and assuming entity. In exchange for the extinction of assumed liabilities, the assuming entity pays the ceding entity the discounted value of estimated future ceded payments which would have taken place under the reinsurance contract, plus any amounts currently due.

Our actuaries can work on the commutation of any type of facultative or treaty reinsurance, on a pro-rata or excess basis, for all property and casualty lines of business.