Basic Information needed for the assessment of treaty proposals

1. Ceding Company:
   • Most recent annual report of ceding company
   • Full name and address
   • History of company
   • Information on products
   • Market share
   • Number of employees
   • Possible rating by Standard & Poor's, AM Best, Moody's, and/or Fitch.
   • Any brochures available
2. Contract:
   • Type of contract (Quota Share, Excess of Loss, Surplus, ect.)
   • Limits per risk and per bond (basic and special limits)
   • Retention (gross and net e.g. retention covered by X/L)
   • Other conditions e.g. commission, profit commission, management expenses etc.
   • Exclusions
   • Treaty wording including a description of anyone risk etc
   • Description of present portfolio e.g.;
     for a bond treaty; a breakdown in performance bonds, maintenance bonds, ect.
     for a credit treaty; a breakdown in sectors e.g. food & drink, tabacco, textiles etc.
   • Statistics of previous years showing premium income and losses (paid and outstanding)
   • Name(s) of leading re-insurer(s) and other re-insurers that take part in this contract or to whom this contract has been offered
   • Most recent premium volume, preferably broken down per type of business
3. Risks:
   • A full description of the type of risks to be covered plus an indication of the average and/or maximum duration of the risks
   • A breakdown of the number of risks according to assured amount e.g.

     Limit	Number of clients
     	For credit treaty number of buyers
     0 - 100.000	X
     100.001 - 200.000	Y
     200.001 - 500.000	Z
     etc.

4. Details about Underwriter(s):
   • Number of underwriters employed by ceding company
   • A description of the experience of the underwriter(s) plus, if possible, information about results from his/her previous positions
5. Underwriting Guidelines:
   • Premium rates (if possible per type of bond)
   • What are the target markets/sectors?
   • What are the markets / sectors to be avoided?
   • Are clients visited by underwriters?
   • Financial analysis of risks: how does ceding company assess such an analysis?
   • What are minimum requirements e.g. solvency, equity, etc.
   • Definition "any one risk"
   • Policy of ceding company regarding counter guarantees/collateral (what kind) and are these signed by risk company and/or mother company of risk company?
   • Underwriting procedures (e.g. credit committee)
   • Regarding credit insurance: Percentage of coverage/ Use-factors/ Waiting periods
6. Projections of coming years:
   • Expected premium volume for next 3 years in numbers
   • Market share & strategy
   • Growth expectations (in what area, which sectors etc.)