retrocession

  • The process whereby a reinsurance company (the reinsurer) in turn cedes all or a portion of what it has accepted for reinsurance from the direct writing company to another reinsurer. The second reinsurer reinsures the first reinsurer.

    Internal Revenue Service 1

1Internal Revenue Service, Internal Revenue Manual 4.42.6 Glossary, http://­www.irs.gov/­irm/­part4/­irm_04-042-006.html (last accessed Dec. 22, 2009).