One of the insurers has written a large project with Total Sum Insured = USD 1000 million,
The insurer has a 9-line surplus treaty with Retention under surplus treaty of USD 50 million Sum Insured (Treaty not on PML).
Due to very competitive terms, the insurer is not getting Facultative Proportional Support. Hence, they decided to buy Facultative Non-Proportional Reinsurance.
Which of the attached structures should the Insurer opt for (without having to take approval of Surplus Treaty Underwriters)?
Hint-Try to use the concept of Treaty Compression.

Blog By Atmaram Cheruvu