Loss Portfolio Transfer

A deal where an insurer hands off a block of existing claims (and money to pay them) to a reinsurer, clearing the liabilities off its books.

This is a friendly general explanation, not legal or policy language. Exact coverage depends on your policy, carrier, and state. 🤝

Written and reviewed by the We Insure Things team — licensed independent insurance agents. Last reviewed July 23, 2026. Questions? Ask a licensed agent.