Reason for Termination: Underwriting results showed an exceptional high combined ratio so pricing must be adjusted. New treaty will be issued for the revised term and condition accordingly.
Actions after Termination: Due to some policies are written for a period of more than 1 year, therefore, the Reinsurer will be responsible for the in-force businessl on a run off basis until original policy’s expiry date.
New business or renewal with effective date of 1/1/2016 onwards will be ceded to a new treaty which will be arranged according to the new policy covers and revised premium.