All templatesREINSURANCE AGREEMENT
THIS AGREEMENT is made on 1 October 2026.
BETWEEN
(1) PWANI GENERAL INSURANCE COMPANY LIMITED (the Reinsured); and
(2) CONTINENTAL REINSURANCE PLC (the Reinsurer).
RECITALS
(A) The Reinsured carries on insurance business and wishes to reinsure part of it.
(B) The Reinsurer has agreed to reinsure it on the terms of this Agreement.
IT IS AGREED as follows:
1. Definitions
1.1 In this Agreement, unless the context otherwise requires:
(a) Business Covered means fire and allied perils business and engineering (contractors' all risks) business written in Kenya.
(b) Business Day means a day other than a Saturday, a Sunday or a public holiday in Kenya.
(c) Loss means a loss under an Original Policy that falls within this Agreement.
(d) Original Policy means a policy of insurance issued by the Reinsured within the Business Covered.
2. Reinsurance
2.1 This is a treaty (proportional) reinsurance:
(a) every Original Policy within the Business Covered that the Reinsured issues or renews during the term is ceded to and reinsured under this Agreement without further act; and
(b) the Reinsurer receives its proportion of the premiums and bears the same proportion of every Loss, as the Retention and Limits clause states.
2.2 The Business Covered is Fire and allied perils and engineering (contractors' all risks) business written in Kenya.
2.3 Each party shall act towards the other with the utmost good faith in all matters arising under this Agreement, including the ceding of risks, the rendering of accounts, the notification and settlement of claims, and the exercise of any right of inspection or set-off.
3. Retention and Limits
3.1 The retention and limits under this Agreement are:
(a) 40% quota share retained by the cedant;
(b) treaty limit KES 500,000,000 any one risk;
(c) event limit KES 1,500,000,000.
3.2 The Reinsurer's liability under this Agreement shall never exceed the limits set out in clause 3.1.
3.3 The retention set out in clause 3.1(a) shall be retained by the Reinsured for its own account, and the balance shall be ceded to the Reinsurer in accordance with clause 2.
3.4 No liability shall attach to the Reinsurer in respect of any risk or event in excess of the limits set out in clause 3.1, and no other limit shall apply to this Agreement.
4. Premium and Commission
4.1 The premium and commission terms of this Agreement are as follows:
(a) Premium ceded pro rata;
(b) ceding commission 30%;
(c) profit commission 20% after 10% management expenses.
4.2 The Reinsured shall give the Reinsurer a statement of account with each payment it makes under this Agreement.
4.3 Each party may set off sums due from it to the other under this Agreement against sums due from the other to it.
5. Term
5.1 This Agreement starts on its date and continues for a term of 1 year.
5.2 Expiry of this Agreement does not affect either party's rights or liabilities in respect of that term.
6. Claims Notification
6.1 The Reinsured shall give the Reinsurer prompt written notice of every claim or circumstance likely to give rise to a Loss.
6.2 The Reinsured shall give the Reinsurer the information and documents about that claim or circumstance that the Reinsurer reasonably asks for.
6.3 The Reinsured shall keep the Reinsurer informed of the progress of that claim or circumstance.
7. Follow the Settlements
7.1 The Reinsurer shall follow the fortunes of the Reinsured on the Business Covered.
7.2 The Reinsurer shall follow every settlement of a claim made by the Reinsured, including a compromise, provided that the settlement is within the terms of the Original Policy and of this Agreement and was made in a proper and businesslike way.
7.3 The Reinsurer is not bound by an ex gratia payment made by the Reinsured unless the Reinsurer agreed to that payment in writing.
8. Insolvency
8.1 If the Reinsured becomes insolvent or goes into liquidation, the Reinsurer shall pay what is due under this Agreement to the Reinsured or to its liquidator.
Insurance
Reinsurance Agreement template (Kenya)
What it is for
A sample Reinsurance Agreement for use in Kenya, drafted under the Insurance Act Cap 487 and the IRA regulatory requirements.
The Kenyan law it follows
- Insurance Act Cap 487
- IRA regulatory requirements
Who prepares it
This is normally drawn by an advocate, and where it is a court paper, filed by one. The sample shows what the finished document looks like.
Draft this for your matter
Advocates draft this on Lex from their own facts and download it in Word. If you need one prepared for you, find an advocate.
Sample reinsurance agreement
The first part of the sample is shown here. The names, amounts and facts are made up to show how the document reads.
The rest of this reinsurance agreement is for Lex members
Create a free account to read the whole sample, draft it for your matter and download it in Word.
This is a sample for general information. It is not legal advice and may not suit your situation. Laws change, and a document has to fit your own facts; have an advocate check it before you rely on it.