Reinsurance account reconciliation: three statements of one account, matched line by line, every difference explained
Statements matched line by line, every difference explained.
See one case, screen by screen ↓Matching the three statements of one reinsurance account — the cedant’s ceded technical account, the broker’s statement of account and the reinsurer’s technical account — so that all three agree before the balance is settled. Reinsurance Account Reconciliation does the reading, ticking and explaining with six agents; the accountant agrees the account.
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Every quarter the same account is written three times: the cedant’s ceded technical account from its own ledger, the broker’s statement of account, and the reinsurer’s technical account from its own books. They arrive as a spreadsheet export, a broker PDF and an emailed statement, each in its own order — and the three balances rarely agree.
So the reinsurance accountant ticks the three against each other by hand, line by line, then works out why the totals differ: a loss converted at the quarter-end rate instead of the book rate, a loss paid on 29 June booked by the reinsurer in Q3, an excise tax allowance left off, a cash call paid direct, the same claim shown twice. Each difference goes out by email, the account stays unagreed, cash sits with the broker and paid-loss recoverables age.
Estimated split for one treaty account across cedant, broker and reinsurer, by hand and with the solution.
Six agents read, tick and explain three statements of one account; the accountant agrees it and the controller co-signs.
Northfold Re writes 30.0% of Calder Ridge Mutual’s Commercial Property Quota Share 2026, placed by Ashgrove Re Partners. Northfold’s Q2 technical account arrived on 9 October. Here is what happens next, screen by screen, in the working solution.
Nadia opens the Q2 2026 board: 28 accounts across six treaties and seven reinsurers, 79 of 84 statements in. Six are settled, nine agreed, eight have breaks and five are waiting on a statement. A square fills as each party’s statement lands — Calder Ridge, broker, reinsurer.
“30 open breaks · $3,622,308.85 at stake · Northfold Re on the quota share is the largest open account.”
The account opens as three documents in their own form: Calder Ridge’s ledger export at $1,974,157.10, Ashgrove’s statement of account SOA AGR-26Q2-NF-0417 at $551,353.25 due to Northfold, and Northfold’s technical account at $2,101,617.35. Above them, the figure all three should say.
“What all three should say: $1,771,167.35 due to Northfold, after Ashgrove’s brokerage.”
The statement reader takes each statement into items with page and line, and checks each ties to its balance. The treaty terms checker recomputes the 30.0% commission, the 2.5% brokerage and the 1% excise tax on $8,119,590.00 — and notes that Ashgrove has no tax line. The line matcher ticks eight items that agree in all three to the cent.
“8 items agree in all three to the cent · 5 agree in two · 1 line twice on Ashgrove’s.”
Break 1 of 5. Calder Ridge paid Northfold’s 30% of the Riverview Cold Storage fire, CAD 2,400,000, on 22 May and booked it at 0.7316: $1,755,840.00. Northfold converted at the 30 June quarter-end rate, 0.7266: $1,743,840.00. The panel shows the line in each statement, the arithmetic and the clause — and names Lucía Bertrand at Northfold to correct.
Art. 14: “converted at the rates of exchange used in the Company’s books on the date of the transaction.”
Ashgrove shows claim 1227, Bellweather Self Storage, at page 1 line 8 and again at page 2 line 12. Calder Ridge paid it once, on 21 April. A thread joins the ledger line to both broker lines and to Northfold’s single line.
Art. 11: “Each loss shall be shown once.”
Northfold wired its $1,204,800.00 cash call on loss 1182, Hartwell Distribution Center, straight to Calder Ridge’s account at Tillmore Bank on 12 May — not through the broker. Ashgrove left it off, so without the credit Northfold would pay the loss twice.
Art. 15: a cash call “shall be credited to the Reinsurer in the next account, whether paid to the Company or through the Intermediary.”
Nadia queries Ashgrove. The letter to Tom Feeney is drafted with all three of the broker’s breaks — the cash call, the excise tax allowance and the duplicate — Calder Ridge’s figure, Ashgrove’s figure and the clause for each, and the balance once corrected. She reads it and sends it.
“Sent to Tom Feeney · 3 breaks with every line quoted.”
All 30 open breaks sit in one list by cause — FX rate date, timing, cash, tax deduction, duplicate, share, missing item — with what differs, the amount, the party that corrects and how many days it has been open. Grouped queries go one message per counterparty.
“You accept or query; the agents never book an adjustment.”
On Calder Ridge’s figures, Calder Ridge pays Ashgrove $1,974,157.10; Ashgrove keeps $202,989.75 brokerage under Art. 9 and remits $1,771,167.35 to Northfold within five business days. The cash call is already credited. Before it is paid: the ledger ties to the treaty, Northfold’s collateral covers its recoverables, and the bank details match the last payment.
“5 breaks open · you can still pay on Calder Ridge’s figures.” The open breaks stay with their owners.
Nadia agrees the account and signs. Because it is above $1,000,000, the instruction goes to Gareth Lomax for the second signature. Only when he has signed is the payment released to Tillmore Bank.
“Gareth Lomax co-signed · $1,974,157.10 released to Tillmore Bank.”
The same quarterly account, seen by the five people who carry it — at the cedant, the broker and the reinsurer.
Six agents read, tick and explain three statements of one account; the accountant agrees it and the controller co-signs.
Reads ledger exports, broker statements of account and reinsurer technical accounts — PDF, spreadsheet or email — into items with treaty, period, party, item type, loss reference, currency, amount, rate, page and line, and checks they add up to the statement balance.
Ticks items that agree in all three statements with a shared reference, once treaty, period, item type and loss reference agree and the amounts are within tolerance.
Reads the treaty wording and the panel, and recomputes ceding commission, brokerage, the excise tax allowance and each reinsurer’s share from the cedant’s figures, noting the currency clause and cash-call terms.
Gives every unticked item a cause — exchange-rate date, timing, deduction, cash, duplicate, share or missing — with the arithmetic, the line in each statement, the treaty clause that decides who is right and the party who corrects.
Once an account is agreed, nets it, offsets cash calls already paid, takes off brokerage and drafts the payment instruction from cedant to broker to reinsurer.
Ages every balance by counterparty and days past the settlement date, flags paid-loss recoverables over 90 days, and drafts chasers with the open breaks and statement lines attached.
Agree each account, co-sign above $1M. The agents propose; a named person decides.
Ask in plain words about a loss, a party, a cause or what you can pay. Every answer points to the statement line, the bank line or the clause behind it.
Why is Northfold $12,000 lower on the Moncton fire?
It is an exchange-rate date. Calder Ridge paid Northfold’s 30% of the Riverview Cold Storage fire, CAD 2,400,000, on 22 May and booked it at its rate that day, 0.7316: $1,755,840.00. Ashgrove copied that figure. Northfold converted at the 30 June quarter-end rate, 0.7266: $1,743,840.00. Art. 14 says the rate in the Company’s books on the date of the transaction, so Northfold corrects.
What does Ashgrove need to correct on its statement?
Three lines on SOA AGR-26Q2-NF-0417: Northfold’s cash call of 12 May on loss 1182 is not credited (+$1,204,800.00); there is no excise tax allowance, 1% of $8,119,590.00 (−$81,195.90); and the Bellweather loss 1227 is on page 1 and again on page 2 (+$96,210.00). Corrected, Ashgrove’s balance moves from $551,353.25 to $1,771,167.35.
What can we pay on Northfold’s Q2 account?
On Calder Ridge’s figures, $1,974,157.10 goes to Ashgrove; Ashgrove keeps $202,989.75 brokerage and $1,771,167.35 reaches Northfold. That already credits the $1,204,800.00 cash call and the excise tax allowance. Paying now is allowed while breaks are open, and they stay with their owners. It is above $1,000,000, so Gareth Lomax signs after you.
Which reinsurers are past 90 days on paid losses?
Two: Oriel Bay Re, $118,600.00 on a CAT Q1 recovery waiting on Ashgrove’s statement, and Corvid Re, $44,700.00 on a casualty 2025 loss, over 180 days. Paid-loss recoverables this old count against Calder Ridge in the provision for reinsurance at year end. The chasers are drafted for Imogen Shah.
13 screens from the working solution, on its sample data. Pick one to see it large.
What the agents match on, how they explain, who decides and when they chase — all settings.
| Setting | Default | Choose from |
|---|---|---|
| Tolerance on an item | $50 | $0 to $500 · below it, a difference is ticked and noted |
| Exchange rate rule | Company’s book rate on the transaction date | Book rate on the transaction date · rate at quarter end · rate on the settlement date |
| Match losses on | Treaty · period · loss reference | Fields that must agree before amounts are compared |
| Causes and their owners | 7 causes on | FX rate date · timing · cash · tax deduction · duplicate · share · missing item |
| Who agrees an account | Reinsurance accountant | Nadia Okafor, Dev Malhotra |
| Second signature on a settlement | Above $1,000,000 | $500,000 · $1,000,000 · $2,500,000 |
| Chase a missing statement | Day 15 · 30 · 45 | Reminder to the broker after the account date |
| Queries not answered | After 10 days | After 5 · 10 · 15 days, then to the credit controller |
Every figure is labelled: a target the solution is built to, an estimate, a typical published result, or a proven one.
“demo” = seen in the working solution, on its sample data · “target” = the design goal, measured in the live solution · “estimated” = our estimate · “typical” = published figures (Deloitte, Ceded reinsurance survey, 2023 — 71% say late data leads to manual workarounds, 57% have no single source; 26 U.S.C. §4371(3) — the 1% excise tax on reinsurance premiums paid to foreign reinsurers). People, companies and treaties named on this page are fictional — characters and sample data in the working solution.
Matching the three statements of one reinsurance account — the cedant’s ceded technical account, the broker’s statement of account and the reinsurer’s technical account — so that all three agree before the balance is settled. Reinsurance Account Reconciliation does the reading, ticking and explaining with six agents; the accountant agrees the account.
The difference explainer gives each unticked item a cause — exchange-rate date, timing, deduction, cash, duplicate, share or missing — shows the arithmetic, quotes the line in each statement and the treaty clause that decides who is right, and names the party who corrects.
Yes. Amounts in other currencies are checked against the treaty’s currency clause and the exchange rate rule in Settings. The treaty terms checker recomputes the excise tax allowance from the wording and the panel, and flags a statement that leaves it out.
No. Agents read, tick, explain and draft. They never book an adjustment, accept a break, change a counterparty’s figure or release a payment. The accountant agrees each account, and above $1,000,000 the finance controller co-signs.
Yes. The broker and reinsurer can be invited as guests: they see the queries on their own statements and upload revised statements, which are matched again.
Yes. The daily bank file is matched to settlements and cash calls, so a cash call paid direct is credited in the next account. Every balance is aged by counterparty, paid-loss recoverables over 90 days are flagged, and chasers are drafted for the credit controller.
Yes. The tolerance on an item, the exchange rate rule, the fields losses must match on, causes and owners, who agrees an account, the second-signature limit, write-off limits and the chasing timetable are all settings, each change saved as a new rule version.
The Agentic Solution Engine builds and deploys it from your requirements and documents — your treaty wordings, statement layouts and a quarter of past statements — and it goes live once every quality gate has passed. We will walk you through it on your own accounts first.
A checked renewal submission in days, not weeks, every figure traced.
1-min demoTreaty Underwriting WorkbenchA first view of every program in hours, not days.
1-min demoTreaty Wording ComparisonEvery changed clause found before signing, not when a claim tests it.
1-min demoWe’ll run Reinsurance Account Reconciliation on a quarter of your own statements.