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Old 01-29-2018, 09:53 PM
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Question Ceding Commission in Reinsurance Treaty

What would be the effects of a negative ceding commission?
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Old 01-30-2018, 11:09 AM
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Losing the bid to a competitor??
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Old 01-30-2018, 11:45 PM
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Losing the bid to a competitor??


What if there's no competition? How would it affect the financials?
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Old 01-31-2018, 11:24 AM
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What if there's no competition? How would it affect the financials?
I don't claim to know. But if I had to do it without any guidance, I would probably put the amount collected in as "premium" and zero as the commission. Accountants seem to be allergic to negative entries.
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Old 01-31-2018, 11:35 AM
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How would it affect the financials?
You should seek expert guidance. This can be a tricky practice area.
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Old 01-31-2018, 12:58 PM
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Exclamation Tricky Reinsurance

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You should seek expert guidance. This can be a tricky practice area.
Are there no experts on the AO?
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Old 01-31-2018, 01:21 PM
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It can affect both the balance sheet and the income statement of both the cedant and the reinsurer. There may be tax implications. If the amount may be material, you should seek one-on-one advice.
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Old 01-31-2018, 01:47 PM
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Are there no experts on the AO?
Sure. You just have no idea whether a poster responding is one of them.
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ceding commission, deposit accounting, reinsurance, risk transfer, treaty

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