definition
strict definition
reinsurance company
A company which distributes financial risk among insurers to stabilize their business.
A reinsurance company is a company that mitigates risk on an industry-wide level and whose customers are usually individual insurance companies.
The service distributes risk arising within the insurance industry. Its customers are usually insurers whose own portfolios expose them to financial losses.
A property owner buying ordinary building insurance is in a different position from an insurer obtaining reinsurance. Reinsurance supports the insurance business without being the property's retail policy sale.