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Discover LudwigThe word "reinsurance" is a correct and usable word in written English
It is used to refer to a type of insurance that provides protection for an insurer against losses in the event of large claims. For example, an insurer may use reinsurance to reduce the risk of a large financial loss in the event of a natural disaster.
Dictionary
reinsurance
noun
Insurance purchased by insurance companies that spreads the risk associated with selling insurance around so the danger of one large monetary loss is minimized.
Exact(60)
One consequence is that reinsurers will have less capital when reinsurance policies are renegotiated and what they have they are not keen to risk.
And recent floods in Europe will cost reinsurers billions of dollars.Despite hefty increases in reinsurance premiums when contracts were renewed at the beginning of the year, the industry is not well.
Initially, the regulators' attention was centred on a "finite risk" reinsurance contract with General Re, a subsidiary of Mr Buffett's Berkshire Hathaway, that is thought to have boosted AIG's reserves artificially.
Swiss Re, a reinsurance company, estimates that the total cost of the damage was $5 billion, but most of it was uninsured.
Swiss Re recently purchased General Electric's reinsurance arm, and Britain's Aviva is in the process of buying AmerUs, an annuity business, despite selling its property-casualty business in America just five years ago.
Overall, insurance premiums rose by 2.7% in real terms to $4.3 trillion in 2010, according to Swiss Re, a reinsurance firm.
Credit-derivative product companies (CDPCs) act as a kind of reinsurance company, trading swaps with CDS dealers.
But such downturns are a normal part of the business cycle, indeed a key channel through which the Federal Reserve slows down the economy when it raises interest rates.The third option would be to keep the FHA and sell reinsurance on a broader range of mortgages.
The German telecoms behemoth has long coveted full ownership of Poland's biggest mobile-phone operator.The credit rating of Munich Re, the world's largest reinsurance company, was cut by Standard & Poor's, after it reported a fifth quarterly loss in a row, of euro365m ($396m).
But after hurricanes Katrina, Rita, and Wilma caused over $60 billion in claims and sopped up much of the world's available reinsurance capacity, insurers have increasingly sought to share their risk with the markets.
These include Geneva (private banking), Zurich and Bermuda (insurance and reinsurance), Chicago (futures and options), Qatar (infrastructure finance) and Bahrain (Islamic finance).
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