By edition

Reinsurer

You assume risk from cedants. This guide covers structured treaties (proportional and non-proportional), facultative, ingesting and reconciling bordereaux, the profit-commission statement, and protecting your own book with retrocession.

Best use case

A reinsurer writing proportional (quota-share / surplus) and non-proportional (excess-of-loss) treaties plus facultative, who needs the numbers to derive from the slip terms — cessions, XL recoveries, profit commission and technical accounting all computed, not keyed.

Structure treatyBook (booking code)Cessions / XL lossesIngest & reconcile bordereauxProfit commissionRetrocede

1. Treaties & structured terms

Create the treaty
Reinsurance → Treaties. Capture direction (inward), type, line of business, period and the structured financial termsfrom the slip — retention/cession %, commission, overriding & profit commission %, management expense %, AIT %, portfolio transfer %, EPI. Everything downstream derives from these.
Add the structure
Surplus sections (retention line + surplus lines, per subclass) for proportional; XoL layers (attachment / limit / reinstatements) for non-proportional.
Book it (booking code)
Making a treaty active issues a booking code (BKR-YYYY-NNNN) — the handoff to Credit Control, who process the accounting by that code.

2. Cessions & XL losses

The surplus engine splits each risk: retention (1 line) + surplus (up to the lines / maxCession), with premium following the sum-insured split. For non-proportional, the XL losscalculator splits a gross loss across the layers and computes the reinstatement premium(pro-rata as to amount); recording it posts the assumed claim and the reinstatement income to the ledger.

Surplus — 100M sum insured, 20M retention (1 line), 9 surplus lines

Retention (cedant keeps 1 line)	20,000,000
Surplus (ceded, within 9 lines)	80,000,000
On 500,000 premium → ceded	400,000
Ceded	80% of the risk

Excess of loss — 45M loss across two layers (20M xs 10M, 50M xs 30M)

Layer 1 — full 20M limit	loss 20,000,000 · reinstatement 2,000,000
Layer 2 — 15M into the layer	loss 15,000,000 · reinstatement 900,000
Retained by cedant (below 10M)	10,000,000
Recovered / reinstatement	35,000,000 / 2,900,000

3. Facultative

Rate & accept
Reinsurance → Facultative. The rating shows your accepted position — share of premium and liability (or a share of the XoL layer), less ceding commission. Walk it Submitted → Quoted → Accepted → Bound; on bind a booking code (BKF-) is issued and the assumed premium posts to the ledger.

4. Bordereaux — ingest & reconcile

Ingest
Reinsurance → Bordereaux.Paste/upload a cedant's CSV or Excel; map its columns to the canonical schema (save the mapping per cedant to reuse; AI can propose the mapping). Bad rows land in an exception queue— you can't post until every row is clean.
Reconcile & post
iqava recomputes the expectedceded premium/commission from the treaty terms and flags variances against the cedant's figures — catching cedant errors. Posting turns the lines into technical accounting movements on the treaty, which post into the one ledger.

Best practice

Save a column mapping the first time you process a cedant's format — every future period reuses it, so ingest is one paste and a click.

5. Profit commission

The profit-commission statement reproduces the real format: Income − Outgo → net profit → PC% × net profit (nil on a deficit). AIT and portfolio withdrawals derive from the treaty terms(AIT %, portfolio %); management expense = mgmt% × premium. It ties to the cent against the cedant's statement.

6. Retrocession

Protect your assumed book: when an inward treaty binds and an active outwardretro treaty covers the line, a retrocession is auto-drafted; confirming it posts the retro premium ceded to the ledger. Manage retro programmes under Reinsurance → Retrocession.

Best practices — recap

Enter the slip terms as structured data — cessions, PC and accounting all derive from them.
Model surplus sections / XoL layers so risk-level splits are automatic.
Use the bordereaux reconciliation to catch cedant errors before posting; keep the exception queue clean.
Let AIT and portfolio transfers derive from treaty terms in the PC statement.
Confirm auto-retrocessions to keep your net position current.