Types of Business

Proportional Reinsurance

Quota Share

Reinsurance arrangement for which a given percentage of every risk within a defined category of business written by the insurer is reinsured with Africa Retakaful (both treaty or Facultative business).


Reinsurance arrangement for which a surplus share or surplus of line treaty is ceded to Africa Retakaful . The retained “line” is defined as the ceding company's retention (both Facultative and treaty but most common on treaties)

Facultative Obligatory

A Reinsurance arrangement under which the ceding company select to cede to Africa Retakaful while Africa Retakaful is obligated to accept cessions of risks of a defined class, provided that the risks fall within the contract guidelines. (this contract is of mixed up nature between treaty and facultative).

Non-proportional Reinsurance

Working Excess of Loss

Method whereby an insurer pays the amount of each claim for each risk up to a limit determined in advance and the reinsurer pays the amount of the claim above that limit up to a specific sum, the retained amount of loss by ceding company is the deductibles/priority/First Excess or retention , The programme is arranged in layers. (both treaty and Facultative business can be arranged in Excess of loss basis but it most common in treaties)

Catastrophe Excess of Loss

Is Excess of loss treaty arranged also in Layers, the reinsurers’ liabilities is up to the amount in excess of the deductibles/priority/First Excess, the treaty respond normally when there is an accumulation from natural disasters and an event which give rise to a series of losses. (a two risk warranty)

Stop Loss or Aggregate Excess of Loss

In this cover reinsurers meet loss up to a percentage of loss ration up priority or deductible which is alos fixed in percentage of loss ratio (i.e 130% Excess 105%) this means that when the loss ratio exceed 105% the reinsurers respond and bear all losses until loss ratio reaches 130%)

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