// definition
ModCo
Modified coinsurance
Short definition
A proportional reinsurance structure in which the cedant retains both assets and reserves on its balance sheet. The treaty allocates agreed risks and returns to the reinsurer and sets settlements between the parties. Protection depends on rights over the assets, their valuation and recapture conditions.
risk atlas
Knowledge map
Intuition
Asset ownership and reserve recognition remain with the cedant while the treaty allocates risks and returns.
Related analyses
Primary sources
- BMA: Collateral Structures in the Bermuda Long-term Insurance MarketPage 2, footnote 2; pages 4–5: cedant retains assets and reserves; contractual rights and economic returns.