A ratio which measures a company's reliance upon its reinsurers, and its calculated potential liability based on readjustments on reinsurance. It is calculated by adding the total ceded reinsurance recoverables due from international affiliates for paid, unpaid, and incurred but not reported (IBNR) losses, to unearned premiums and commissions. Funds withheld from reinsurers are then deducted from this subtotal and reported as a percentage of the policyholder surplus.
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