Understanding Reinsurance

Aviation Alliance Insurance Risk Retention Group, Inc. provides access to reinsurance and liability aviation insurance. With us, small shops that could not previously afford aviation products and completed operations coverage now have an opportunity to get coverage at a fair cost. AAIRRG carries reinsurance with a net worth of $88.1 billion from substantial A-rated reinsurers to augment our balance sheet.

What Is Reinsurance?

Reinsurance is essentially insurance for an insurance company. Such transactions can be found dating back to 1799, so this is nothing new. In 2010, the total U.S. reinsurance premium was estimated to be $118.5 billion.

As part of their responsibilities, insurance companies' executives and actuaries analyze the types of risks to make a financial calculation as to the amount of risk and premium they wish to hold (net) to themselves. They then transfer (sell) that excess portion of exposure to loss, and sell corresponding premiums to reinsurers.

Once the insurance company has made that determination, they then enter into a reinsurance agreement, referred to as a treaty, with one or more reinsurers. The reinsurers then assume, under contract, the portion of exposure to loss either on an excess of loss (above a certain dollar amount) or a pre-agreed-upon percentage of each risk and each premium dollar.

Every responsible insurance company strengthens its balance sheet and "spreads" its risk by purchasing reinsurance. Reinsurers are subject to insurance regulation just as are the insurance companies they reinsure, and are held to stringent standards.

Plane Propeller

Getting Started

Before commencing operations, AAIRRG successfully concluded a reinsurance treaty with many of the leading aviation reinsurers in the world. Each one is a highly-rated "A" reinsurer with a combined policyholder surplus (net worth) in excess of $95.2 billion. AAIRRG retains the first $500,000 of any one claim, and all amounts above that are fully reinsured up to each of the respective policy limits.


AAIRRG has standards for eligibility so not just any shop can qualify. In fact, more than 41% of the Part 145 market will never hear from us due to other activities they are engaged in. The remainder will find that our initial process is rigorous. This is to ensure the financial safety of the group as a whole. Those who qualify, however, will enjoy a fair price for exceptional insurance options. Our quote form is viewable in Microsoft Word. Fill in the blanks and email it back to us. If you don't have Word, please call us for assistance.