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Investments glossary

Quota Share Treaty


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Quotes of the day:

I gave Donald free rein, he has great vision, and everything he touches seems to turn to gold. Donald is the smartest person I know.

— Fred Trump

A quota share treaty is a pro-rata reinsurance contract in which the insurer and reinsurer share premiums and losses according to a fixed percentage. Quota share reinsurance allows an insurer to retain some risk and premium while sharing the rest with an insurer up to a predetermined maximum coverage. Overall, it’s a way for an insurer to boost and preserve some of its capital.


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