Ceding Company
Categories: Insurance
A little bit of deep-cut insurance terminology.
To understand this one, a little info about a part of the business known as reinsurance. Even insurance companies have insurance companies. These firms are called (rather predictably) reinsurance companies.
The goal of reinsurance is for insurance companies to take some of the risk of potential claims off their books...and move them onto the books of someone else.
The company sending risk out is called the "ceding company."
