Insurance

Reinsurance Premium Ceded to Reinsurer

Ceding a proportional share of risk and premium to a treaty reinsurer.

Account NameTypeDebit ($)Credit ($)
Reinsurance Premium Ceded (Expense)Expense (+)240.00-
Reinsurance PayableLiability (+)-240.00

💡 Accountant's Note

Ceded reinsurance transfers risk but is shown gross — the ceded premium is an expense (reducing net premium income) and a matching UPR ceded asset is created. Netting is not permitted under IFRS 4/17.

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