Quota Share Treaty Cession Reconciliation Worksheet
Reconcile ceded premium and losses under a quota share treaty using bordereaux and ledger records. This worksheet helps you spot variances, document adjustments, and keep a clean audit trail.
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Built for: Property And Casualty Insurance · Reinsurance · Managing General Agents · Captive Insurance
Overview
This worksheet is for reconciling ceded premium and ceded losses under a proportional quota share treaty. It brings together the treaty terms, the accounting basis, bordereaux status, ledger figures, variance analysis, and reviewer sign-off in one place so finance and reinsurance operations can compare what was reported with what was booked.
Use it during monthly or quarterly close, when bordereaux have been received and you need to confirm that ceded amounts match the accounting records. It is especially useful when the treaty has a fixed ceded percentage, multiple reporting sources, or timing differences between operational reporting and the ledger. The worksheet also helps when bordereaux are late or incomplete, because it records the gap instead of hiding it.
Do not use this as a general claims log or a treaty administration register. It is not meant for facultative placements, excess-of-loss structures, or policy-level underwriting notes unless those details are needed to explain a variance. If the treaty is inactive, fully settled, or does not require periodic ceded premium and loss comparison, a lighter control record may be enough. The value of this template is in keeping the reconciliation narrow, traceable, and ready for review.
Standards & compliance context
- This template supports an audit trail by linking source bordereaux, ledger values, reviewer comments, and attestation in one record.
- If the worksheet is shared externally or stored in a controlled system, limit access to only the users who need the reconciliation data.
- Keep the form focused on treaty accounting data and avoid collecting unnecessary PII, consistent with data minimization principles.
- Use clear review and approval fields so the reconciliation can support internal control testing and external audit requests.
General regulatory context for orientation only — verify current requirements with counsel or the relevant agency before relying on this template for compliance.
What's inside this template
Reconciliation Overview
This section identifies the period, treaty, company, and preparer so the reconciliation is tied to a specific close cycle.
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Reporting Period Type
Select the period covered by this reconciliation.
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Period Start Date
First day of the reporting period.
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Period End Date
Last day of the reporting period.
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Treaty Name
Enter the quota share treaty name or identifier.
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Ceding Company
Name of the ceding entity for this reconciliation.
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Prepared By
Name or team preparing the worksheet.
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Submission Notes
Optional context for unusual timing items, late bordereaux, or known adjustments.
Treaty Terms and Basis
This section records the treaty mechanics and reporting basis that determine how the ceded amounts should be measured.
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Ceded Percentage
Quota share percentage ceded under the treaty.
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Currency
Reporting currency used for the reconciliation.
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Accounting Basis
Select the basis used for the bordereaux and ledger comparison.
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Bordereaux Received
Confirm whether the source bordereaux were received for the period.
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Bordereaux Source
Select the bordereaux types used in this reconciliation.
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Late or Missing Bordereaux
Indicate whether any bordereaux were late, incomplete, or missing.
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Late or Missing Bordereaux Details
Describe the missing items, expected receipt date, and any interim estimate used.
Ceded Premium Reconciliation
This section compares ceded premium from bordereaux to the ledger and shows whether an adjustment is needed.
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Gross Written Premium
Total gross written premium for the period.
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Ceded Premium per Bordereaux
Ceded premium amount reported on the bordereaux.
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Ceded Premium per Ledger
Ceded premium amount recorded in the accounting ledger.
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Premium Variance
Calculated difference between bordereaux and ledger amounts.
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Premium Variance Reason
Explain timing differences, rate changes, corrections, or other causes of variance.
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Premium Adjustment Required
Indicate whether a journal entry or correction is needed.
Ceded Loss Reconciliation
This section does the same for losses, which often differ from premium because of timing and estimate updates.
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Gross Losses
Total gross losses or incurred losses for the period.
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Ceded Losses per Bordereaux
Ceded loss amount reported on the bordereaux.
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Ceded Losses per Ledger
Ceded loss amount recorded in the accounting ledger.
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Loss Variance
Calculated difference between bordereaux and ledger amounts.
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Loss Variance Reason
Explain case reserves, paid losses, recoveries, timing differences, or other causes of variance.
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Loss Adjustment Required
Indicate whether a journal entry or correction is needed.
Variance Analysis and Audit Trail
This section explains the difference, documents support, and captures review and attestation for audit readiness.
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Supporting Documents
Upload bordereaux extracts, ledger reports, or reconciliation support files.
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Material Variance Present
Indicate whether any variance exceeds the review threshold used by your team.
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Material Variance Explanation
Provide the root cause, expected resolution date, and any escalation details.
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Review Status
Select the current reconciliation status.
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Reviewer Comments
Optional review notes for the audit trail.
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Attestation
Required acknowledgment for submission.
How to use this template
- Enter the reconciliation period, treaty name, ceding company, and preparer so the worksheet clearly identifies the close cycle and responsible owner.
- Record the treaty percentage, currency, accounting basis, and bordereaux source, then mark whether all expected bordereaux were received for the period.
- Populate gross written premium, ceded premium from bordereaux, and the ledger amount, then calculate and explain any premium variance and whether an adjustment is required.
- Populate gross losses, ceded losses from bordereaux, and the ledger amount, then calculate and explain any loss variance and whether an adjustment is required.
- Attach supporting documents, flag whether any variance is material, and add reviewer comments before completing the attestation and review status.
- Post approved adjustments to the ledger or follow up on missing bordereaux, then retain the completed worksheet as part of the audit trail.
Best practices
- Use the same accounting basis for every period so the bordereaux-to-ledger comparison stays consistent.
- Mark late or missing bordereaux explicitly instead of leaving the field blank, because an empty field can look like a completed submission.
- Keep ceded premium and ceded loss calculations separate so one variance does not mask the other.
- Explain variances in plain language, such as timing differences, estimate updates, or source-file corrections, rather than using generic comments.
- Attach the exact bordereaux version used for the reconciliation so reviewers can trace the numbers back to source.
- Flag material variances early and route them for review before the close is finalized.
- Limit supporting documents to what is needed for the reconciliation to avoid unnecessary PII or unrelated records.
What this template typically catches
Issues teams running this template most often surface in practice:
Common use cases
Frequently asked questions
What does this worksheet reconcile?
It compares ceded premium and ceded losses reported in bordereaux against the accounting ledger for a proportional quota share treaty. The form also captures treaty terms, the accounting basis, variance reasons, and whether an adjustment is required. That makes it useful when you need one record that ties operational reporting back to finance.
How often should this be completed?
Most users complete it monthly or quarterly, depending on how often bordereaux are received and how the treaty is settled. If bordereaux arrive late, the worksheet can still be used as a close-out record for the period and then updated when the missing files arrive. The key is to keep the cadence consistent with your accounting close.
Who should prepare and review it?
It is usually prepared by reinsurance accounting, ceded accounting, or treaty operations staff and reviewed by a supervisor, controller, or reinsurance manager. The prepared_by and review_status fields make ownership clear. If the treaty is material, a second review is helpful before any adjustment is posted.
What supporting documents should be attached?
Attach the bordereaux used for the period, ledger extracts, treaty wording or schedule references, and any calculation support for variances. If a variance is material, include the explanation and any email or memo that supports the adjustment. The goal is to make the audit trail complete without collecting unrelated PII.
How does this help with audit and controls?
It creates a documented trail from source bordereaux to the accounting ledger, which helps reviewers see how each ceded amount was derived. The attestation and reviewer_comments fields support sign-off and accountability. That structure is useful for internal controls and external audit requests.
What are the most common mistakes when using it?
Common issues include mixing gross and ceded figures, using the wrong accounting basis, and leaving variance reasons vague. Another frequent problem is failing to flag late or missing bordereaux, which makes the reconciliation look complete when it is not. This worksheet is designed to surface those gaps early.
Can it be customized for different treaties or currencies?
Yes. The treaty_name, ceded_percentage, currency, and accounting_basis fields make it easy to adapt for different quota share arrangements. You can also add conditional logic for treaty-specific adjustments, but keep the form focused on the data actually needed for the reconciliation.
How does this compare with ad hoc spreadsheets?
An ad hoc spreadsheet often leaves out review status, variance reasons, and source documentation, which makes it harder to audit and easier to misstate ceded balances. This template standardizes the same reconciliation steps every period so the output is easier to compare across months and treaties. It also reduces the chance that a late bordereaux issue gets lost in email.
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