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The @openinsure/reinsurance package manages treaty-based reinsurance programs for MGAs and captives. It calculates cessions, compiles statements, and tracks recoveries across quota share (QS), excess of loss (XOL), and aggregate excess of loss (AXL) structures.

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Treaty Types

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Quota Share

The reinsurer shares a fixed percentage of every risk and every loss in the treaty portfolio.

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Excess of Loss (XOL)

The reinsurer pays losses above the retention (attachment) up to a defined limit per occurrence.

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Aggregate XL

The reinsurer pays when total portfolio losses for the year exceed the aggregate attachment.

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Quota Share

import { calcQuotaShareCession } from '@openinsure/reinsurance';

const cession = calcQuotaShareCession({
  treaty: {
    id: 'qs-gl-2025',
    cedingPercentage: 0.3, // 30% ceded to reinsurer
    reinsurers: [
      { name: 'Munich Re', share: 0.5 },
      { name: 'Swiss Re', share: 0.5 },
    ],
    effectiveDate: '2025-01-01',
    expirationDate: '2025-12-31',
    profitCommission: 0.15, // 15% profit commission if LR < 60%
  },
  premium: 2_500_000,
  losses: 850_000,
  expenses: 375_000,
});

// cession.cedingPremium:    750_000   (30% × 2,500,000)
// cession.cedingLosses:     255_000   (30% × 850,000)
// cession.commission:       150_000   (reinsurer's ceding commission)
// cession.profitCommission:  73_500   (15% × [(750k - 255k - 150k)])
// cession.netCession:       271_500   (cedingPremium - cedingLosses - commission)
Key terms:
TermDefinition
Ceding percentageThe share of every premium dollar and loss dollar ceded to reinsurers
Ceding commissionThe reinsurer’s payment to the cedant for acquisition costs (typically 25–35%)
Profit commissionAdditional commission paid when the reinsurer’s loss ratio is below a threshold

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Excess of Loss (XOL)

Per-occurrence XOL protects against individual large losses. 
import { calcXOLCession } from '@openinsure/reinsurance';

const cession = calcXOLCession({
  treaty: {
    id: 'xol-gl-2025',
    retention: 250_000, // Cedant pays first $250k per occurrence
    limit: 750_000, // Reinsurer pays $250k–$1m per occurrence
    rateOnLine: 0.035, // 3.5% of subject premium
    reinstatements: 2, // 2 free reinstatements
  },
  subjectPremium: 2_500_000,
  occurrences: [
    { claimId: 'CLM-001', totalIncurred: 850_000 },
    { claimId: 'CLM-002', totalIncurred: 125_000 },
    { claimId: 'CLM-003', totalIncurred: 1_100_000 },
  ],
});

// cession.xolPremium:    87_500   (3.5% × 2,500,000)
// cession.recoveries: [
//   { claimId: 'CLM-001', recovery: 600_000 },   (850k - 250k, capped at 750k)
//   { claimId: 'CLM-002', recovery: 0 },          (below retention)
//   { claimId: 'CLM-003', recovery: 750_000 },    (1.1m - 250k, capped at 750k)
// ]
// cession.totalRecovery:  1_350_000
Reinstatements: After the reinsurer pays its limit on an occurrence, the treaty limit is reinstated (subject to an additional reinstatement premium). The reinstatements field tracks how many reinstatements remain.

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Aggregate Excess of Loss

AXL protects against an adverse portfolio year. 
import { calcAggregateXLCession } from '@openinsure/reinsurance';

const cession = calcAggregateXLCession({
  treaty: {
    id: 'axl-2025',
    aggregateAttachment: 3_000_000, // Cedant absorbs first $3m in losses
    aggregateLimit: 2_000_000, // Reinsurer pays up to $2m above attachment
    rateOnLine: 0.08,
  },
  subjectPremium: 2_500_000,
  totalLossesIncurred: 4_200_000,
});

// cession.axlPremium:     200_000   (8% × 2,500,000)
// cession.recovery:     1_200_000   (4.2m - 3m attachment)
// cession.netRetained: 3_000_000

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Cession Statements

Quarterly cession statements are compiled from all active treaties and reported to reinsurers. 
import { compileCessionStatement } from '@openinsure/reinsurance';

const statement = await compileCessionStatement({
  orgId: '00000000-0000-4000-a000-000000000001',
  quarter: '2025-Q2',
  treaties: [qsTreaty, xolTreaty],
  db,
});

// statement.period: '2025-Q2'
// statement.treaties: [...per-treaty breakdown...]
// statement.totals: { cedingPremium, cedingLosses, netCession, outstandingRecoveries }
// statement.cashCallRequired: true   (if recoveries exceed cash collateral threshold)

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Generating via API

POST /v1/reports/cession-statement
Authorization: Bearer <token>
Content-Type: application/json

{
  "orgId": "...",
  "quarter": "2025-Q2",
  "format": "pdf"   // pdf | excel | json
}

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Cash Calls

When reinsurer-owed recoveries exceed the trust fund balance, a cash call is triggered. 
POST /v1/reinsurance/cash-call
Authorization: Bearer <underwriter_token>
Content-Type: application/json

{
  "treatyId": "xol-gl-2025",
  "amount": 750_000,
  "dueDate": "2025-09-15",
  "invoiceNumber": "CC-2025-003",
  "reinsurerId": "munich-re"
}
Cash calls appear in the Finance Portal under AR Aging — they age like any other receivable and trigger escalation notifications if unpaid past the due date.

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Disputes

When a reinsurer contests a cash call amount, a dispute is created: 
import { raiseDispute, resolveDispute } from '@openinsure/reinsurance';

const dispute = raiseDispute({
  statementId: 'stmt-2025-q2',
  treatyId: 'xol-gl-2025',
  disputedAmount: 125_000,
  reason: 'Loss allocation methodology disagreement — XOL layer attachment applied incorrectly',
});

// Resolution: accepted (full amount), rejected, or compromised (partial)
const resolved = resolveDispute(dispute, {
  resolution: 'compromise',
  settledAmount: 87_500,
  notes: 'Parties agreed on revised attachment calculation per treaty addendum.',
});
Disputes track status transitions (open → under_review → resolved), support documentation references, and maintain a full audit trail for regulatory reporting.

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Schedule F Filing

NAIC Schedule F reports reinsurance assumed and ceded annually. The compileCessionStatement() output can be formatted for Schedule F submission: 
GET /v1/reports/schedule-f?orgId=...&year=2025&format=pdf
The Finance Portal also provides a Schedule F button under Statutory Reports.

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Integration with Stop-Loss

Stop-loss programs appear as XOL treaties in the cession statement. The @openinsure/stop-loss package calculates recoveries, and @openinsure/reinsurance incorporates them into the quarterly statement alongside traditional reinsurance treaties. See Stop-Loss Insurance for the calculation reference.