The ratio of the re-insurance premiums ceded, plus net ceded re-insurance balances from non-US affiliates for paid losses, unpaid losses, incurred but not reported (IBNR), un-earned premiums and commissions, fewer funds held from re-insurers, plus ceded re-insurance balances payable to policyholders’ surplus. This ratio measures the company’s dependence upon the security provided by its re-insurers and its potential exposure to adjustment on such re-insurance.