reinsurances companies in Saudi Arabia, fair & book value

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1. Reinsurance is a form of insurance purchased by insurance companies in order to mitigate risk. Essentially, reinsurance can limit the amount of loss an insurer can potentially suffer. In other words, it protects insurance companies from financial ruin, thereby protecting the companies’ customers from uncovered losses.

( Questions:)

a. How do reinsurance companies work? B. Explain the differences betwee Quota share reinsurance and Surplus share reinsurance
c. Give example of reinsurances companies in KSA and describe their main services

Q2. What is the concept of “Fair Value? Outline the basic difference between fair value and book value of an asset. Explain the key features of fair value defined by FASB ASC.

Explanation & Answer

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