P1 is what we owe to the reinsurer for contracts that we are already in.
Example P1:
We purchase a XOL reinsurance contract with 1000 of premiums payable equally at the end of each quarter. At the end of Q1 we will have premiums payable of 750.
Example P2:
You have a reinsurance contract that expires at the end of June 30. However, you already have an agreement whereby the reinsurer is contractually obligated to renew the contract with you. These premiums that will need to be paid after June 30 is expected future reinsurance premium
Comments
P1 is what we owe to the reinsurer for contracts that we are already in.
Example P1:
We purchase a XOL reinsurance contract with 1000 of premiums payable equally at the end of each quarter. At the end of Q1 we will have premiums payable of 750.
Example P2:
You have a reinsurance contract that expires at the end of June 30. However, you already have an agreement whereby the reinsurer is contractually obligated to renew the contract with you. These premiums that will need to be paid after June 30 is expected future reinsurance premium