Enterprise · Reinsurance intermediation
Structured, priced, placed — and our compensation is on the slip.
A captive without reinsurance is a balance sheet holding its breath. Quota share relieves capital and buys expertise; excess of loss cuts the volatility that makes the retained layer hard to finance. We structure both, price them technically, market them, and place them as a licensed intermediary-broker.
How we price a layer
Severity is modelled with a single-parameter Pareto curve fitted to your loss history, so the expected loss in each layer falls as the attachment rises — the shape the market actually prices to. Expected loss is grossed up for the reinsurer's expense and profit load and adjusted for the reinstatement structure. The result is a technical rate on line you can defend in a negotiation, not a number a reinsurer hands you.
Rate on line against loss on line
Every layer is shown with both. The gap between them is the reinsurer's margin, expressed as a number rather than a feeling. If a quote comes back at three times technical, you will know before you sign it.
Brokerage, disclosed
We are paid brokerage on ceded premium at a rate printed on the face of the slip and agreed before we go to market. We do not accept undisclosed contingent compensation from a reinsurer on a placement we broker for you.
Collateral and credit for reinsurance
A cession only relieves the cedant's balance sheet if the domicile grants statutory credit. Funds withheld, trusts and letters of credit are structured at placement, not discovered at the annual statement.
A worked programme
Illustrative cedant, priced live by the same engine that produces a real slip. Subject premium $6,500,000, expected losses $3,800,000.
Section A — quota share
| Cession | Ceded premium | Ceding commission | Expected ceded loss | Net cost |
|---|---|---|---|---|
| 30% | $1,950,000 | 32.0% ($624,000) | $1,131,000 | $195,000 |
Section B — excess of loss tower
| Layer | Rate on line | Loss on line | Implied margin | Expected ceded loss | Ceded premium |
|---|---|---|---|---|---|
| $500,000 xs $500,000 | 25.11% | 22.52% | 10.3% | $112,576 | $125,531 |
| $1,000,000 xs $1,000,000 | 7.46% | 6.69% | 10.3% | $66,938 | $74,641 |
| $3,000,000 xs $2,000,000 | 1.81% | 1.63% | 10.3% | $48,798 | $54,413 |
| $5,000,000 xs $5,000,000 | 0.45% | 0.40% | 10.3% | $20,019 | $22,323 |
Brokerage. IronKey acts as a licensed reinsurance intermediary-broker. Its compensation is brokerage on ceded premium at the rate stated above, disclosed to the cedant before placement and shown on the slip. IronKey does not accept undisclosed contingent compensation from a reinsurer on a placement it brokers. On this programme that is $222,691, paid by the ceding company, out of ceded premium.
The placement slip this produces
REINSURANCE PLACEMENT SLIP
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REASSURED : Illustrative captive cell
TERRITORY : United States
BUSINESS COVERED : U.S. general liability and products, technology sector
PERIOD : 12 months at 1 January 2027
SUBJECT PREMIUM : $6,500,000
EXPECTED LOSSES : $3,800,000
SECTION A - QUOTA SHARE
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CESSION : 30% of subject premium and losses
CEDED PREMIUM : $1,950,000
CEDING COMMISSION: 32.0% ($624,000)
EXPECTED CEDED LOSS: $1,131,000
SECTION B - EXCESS OF LOSS
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LAYER ROL LOL PREMIUM
$500,000 xs $500,000 25.11% 22.52% 125,531
$1,000,000 xs $1,000,000 7.46% 6.69% 74,641
$3,000,000 xs $2,000,000 1.81% 1.63% 54,413
$5,000,000 xs $5,000,000 0.45% 0.40% 22,323
TOTAL 276,908
REINSTATEMENTS : 1 at 100% as to time and pro rata as to amount
PROGRAMME LIMIT : $10,000,000
SUMMARY
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TOTAL CEDED PREMIUM : $2,226,908
TOTAL EXPECTED CEDED LOSS : $1,379,331
NET COST OF REINSURANCE : $223,577 (3.4% of subject premium)
NET RETAINED EXPECTED LOSS : $2,420,669
INTERMEDIARY
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IronKey One LLC, licensed reinsurance intermediary-broker
BROKERAGE : 10.0% of ceded premium ($222,691), paid by the ceding company, out of ceded premium
IronKey acts as a licensed reinsurance intermediary-broker. Its compensation is brokerage on ceded premium at the rate stated above, disclosed to the cedant before placement and shown on the slip. IronKey does not accept undisclosed contingent compensation from a reinsurer on a placement it brokers.
CONDITIONS
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Losses occurring during the period. Ultimate net loss as original.
Reinsurers to follow the settlements of the reassured.
Access to records. Insolvency clause. Offset clause.
Funds withheld / collateral as required by the reassured's domicile for
statutory credit for reinsurance.
This slip is an indication prepared for discussion. It is not an offer of
reinsurance and it binds no party until a signed cover note is issued.Model the structure behind it Captive management
Indications prepared for discussion. A slip is not an offer of reinsurance and binds no party until a signed cover note is issued. Not legal, tax, accounting or actuarial advice. Insurance offered through licensed agents. IronKey Care is an independent insurance agency, not an insurer. Availability and eligibility vary by state.