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🏢 '''Cedant''' is the [[Definition:Insurance carrier | insurance company]] that transfers a portion of its [[Definition:Risk | risk]] to a [[Definition:Reinsurer | reinsurer]] under a [[Definition:Reinsurance | reinsurance]] contract. Sometimes referred to as the "ceding company" or "reassured," the cedant retains the direct relationship with the [[Definition:Policyholder | policyholder]] and remains legally responsible for paying [[Definition:Claim | claims]], but it offloads some of the financial exposure to one or more reinsurers in exchange for a share of the [[Definition:Premium | premium]]. The term is foundational to reinsurance transactions and appears throughout [[Definition:Treaty reinsurance | treaty]] and [[Definition:Facultative reinsurance | facultative]] agreements.

🔄 When a cedant enters into a reinsurance arrangement, it negotiates terms that define what risks are transferred, how premiums are split, and under what conditions the reinsurer must respond to losses. In a [[Definition:Quota share reinsurance | quota share]] treaty, for example, the cedant cedes a fixed percentage of every policy in a defined book of business, sharing premiums and losses proportionally. Under an [[Definition:Excess of loss reinsurance | excess of loss]] structure, the cedant bears losses up to a specified [[Definition:Retention | retention]] level, and the reinsurer covers amounts above that threshold. The cedant typically provides [[Definition:Bordereaux | bordereaux]] — detailed reports of premiums written and claims incurred — so the reinsurer can monitor the portfolio's performance. A [[Definition:Ceding commission | ceding commission]] is often paid back to the cedant to compensate for the [[Definition:Acquisition cost | acquisition costs]] and administrative expenses it incurred in writing the original business.

📊 The financial health and [[Definition:Underwriting | underwriting]] discipline of a cedant directly influence a reinsurer's willingness to extend favorable terms. [[Definition:Credit rating agency | Rating agencies]] and [[Definition:Insurance regulator | regulators]] scrutinize a cedant's reinsurance program to ensure it is neither over-reliant on risk transfer nor retaining more exposure than its [[Definition:Capital adequacy | capital base]] can support. For reinsurers evaluating potential partners, the cedant's [[Definition:Loss ratio (L/R) | loss ratio]], [[Definition:Claims management | claims handling]] practices, and transparency in reporting are key considerations. A cedant with strong governance and a clear [[Definition:Risk appetite | risk appetite]] framework tends to attract broader reinsurance capacity at more competitive pricing, creating a virtuous cycle that strengthens its overall [[Definition:Solvency | solvency]] position.

'''Related concepts'''
{{Div col|colwidth=20em}}
* [[Definition:Reinsurance]]
* [[Definition:Ceding commission]]
* [[Definition:Retention]]
* [[Definition:Treaty reinsurance]]
* [[Definition:Facultative reinsurance]]
* [[Definition:Retrocession]]
{{Div col end}}

Definition:Cedant - Revision history

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