Insurance
Quota Share Treaty — Proportional Risk Transfer
Setting up entries for a 40% quota share treaty where 40% of all premiums and claims are ceded.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Reinsurance Premium Ceded (40%) | Expense (+) | 48,000.00 | - |
| Reinsurance Payable | Liability (+) | - | 48,000.00 |
| Claims — Reinsurance Recovery (40%) | Expense (-) | - | 20,000.00 |
| Reinsurance Recoverable | Asset (+) | 20,000.00 | - |
💡 Accountant's Note
A quota share treaty simultaneously transfers a fixed percentage of both premiums and claims. Both sides are recognized gross — the ceded premium is an expense and the claims recovery is a contra-expense.
Professional Excel Template
Get the automated version of this entry. Includes built-in IFRS checks, VAT calculators, and SAP-ready upload formats.
QA
Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.