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News | Archive: February 2026

How proportional treaty reinsurance is priced

February 16 2026 By Reinsurance Solutions pricing, proportional treaty, cameron cupido

There is often confusion over how proportional treaty pricing is calculated. In a proportional treaty, the reinsurer agrees to take a fixed percentage of the insurer's premiums and pay the same percentage of the insurer's claims in return. Both premium and loss are shared proportionally, so pricing is built around what that share of the cedent's results might look like. The pricing of proportional reinsurance is not based on a single, standalone ...

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