CIB 6.14 Recognition of reinsurance receivables

A Captive Insurer may only treat an expected receivable under a reinsurance contract in relation to which it is a Cedant as an asset or take account of it for the purposes of calculating its liabilities under Contracts of Insurance it has effected if the contractual arrangements and the transfer of risk are legally effective and enforceable in all relevant jurisdictions and either the relevant reinsurer is solvent or the Captive Insurer has the benefit of legally effective collateral having a value equal to or greater than the amount of the expected receivable.