Financial Modelling · Section 4.2
Contract period
The date-range term that admits only events inside a contract's coverage window — handling mid-year inceptions, short-tail treaties, and runoff identically.
Every reinsurance contract has an inception date and an expiry date that define the coverage period. Losses from events outside this period never enter the pipeline at all. In the TELT, every occurrence carries a timestamp; the contract period term is a date-range check that excludes rows whose timestamp falls outside inception-to-expiry.
Suppose this term covers 2024-04-01 to 2024-09-30, a mid-year inception. Applied to Trial 9, ten of the thirty occurrences fall outside the window and drop out — three early-year earthquakes and the October hurricane cluster, including the $80.8M Florida storm:
Contract period (2024-04-01 to 2024-09-30) on Trial 9. The ten dimmed occurrences fall outside the coverage window; the $80.8M October hurricane is the largest of them.
| Coverage window | Occurrences | Subject |
|---|---|---|
| In window (Apr 1 – Sep 30) | 20 | $175.6M |
| Outside window (dropped) | 10 | $96.6M |
| Trial 9 subject | 30 | $272.1M |
Across all 20 trials, the coverage window reshapes the loss distribution. The gross curve is the in-window loss; the gap to the subject curve is what the period excludes (the amber curve), which the cedent retains:
Contract period EP curves: SunCoast subject vs the losses inside a 2024-04-01 to 2024-09-30 window. The gap is the loss excluded by the coverage period.
For most Helios Re examples, the coverage period is the full calendar year 2024, so all events pass through. But in practice, mid-year inceptions, short-tail treaties, and runoff contracts all produce partial-year coverage — and the time filter handles them identically.