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To: rjm2 who wrote (12737)	7/5/2001 5:50:04 AM
From: Tony van Werkhooven	Read Replies (1) \| Respond to of 78958

RJM - In response to your question:Does anyone know what "run-off" means in the context below ? I have never heard that term. The likely meaning of the term is as follows:the company acquired is not actively writing new business, i.e. it is in a runoff mode. Hence the acquiring company needs to make an evaluation of reported liabilities and future cash flows, based on claims made and an assesment of IBNR. Tony

To: rjm2 who wrote (12737)	7/5/2001 8:27:52 AM
From: Bob Rudd	Respond to of 78958

rjm2 run-off [Here are some definitions from reinsurance glossaries - Hope this helps] Cancellation - (a) Run-off basis means that the liability of the reinsurer under policies, which became effective under the treaty prior to the cancellation date of such treaty, shall continue until the expiration date of each policy; (b) Cut-off basis means that the liability of the reinsurer under policies, which became effective under the treaty prior to the cancellation date of such treaty, shall cease with respect to losses resulting from accidents taking place on and after said cancellation date. Usually the reinsurer will return to the company the unearned premium portfolio, unless the treaty is written on an earned premium basis. Run-Off Cancellation or Termination A provision in the termination clause (or endorsement) of a reinsurance contract stipulating that the reinsurer shall remain liable for loss under reinsured policies in force at the date of termination, as a result of occurrences taking place after the date of termination, until their natural expiry (and often that the run-off period may not exceed twelve months from the date of termination). See Cut-Off Cancellation or Termination. (Editor's Note: Runoff is one word when used as a noun, two words as a verb transitive, and hyphenated as a compound adjective e.g., a runoff runs off insurance business in force on a run-off basis.) Portfolio Run-off - The opposite of Return of Portfolio - permitting premiums and losses in respect of in-force business to run to their normal expiration upon termination of a reinsurance treaty.

To: rjm2 who wrote (12737)	7/5/2001 8:29:00 AM
From: TimbaBear	Respond to of 78958

rjm2 I haven't heard the term, but it might be one of those terms that are different in the UK than here. (i.e knock-up vs. call). If I were to guess, I'd say the term is used to describe the act of placing excess insurance needs with another insurer, a re-insurer. The re-insurer could then be said to be handling the "run-off" from the insurer. Re-insurers are not retailers by definition, so an association with a source of supply would make sense. If this interpretation is correct, then I gather that they are looking to put together more combinations of insurer and re-insurer. Just a guess though. Timba