// definition
Funds withheld
Reinsurance assets retained by the cedant
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Short definition
A reinsurance structure in which the cedant continues to own and hold the assets on its balance sheet in a segregated account. The contract allocates investment income and losses and governs settlements with the reinsurer. Retaining assets assists control while contractual and operational risks remain.
risk atlas
Knowledge map
Intuition
The economic allocation of risk can change without transferring ownership of the assets.
Related analyses
Primary sources
- IAIS: Structural shifts in the life insurance sectorSection 4.1.6.3: ownership, balance sheet, segregated account and periodic settlements.