TITLE
"A Signaling Model of Reinsurance," Journal of Insurance Issues and Practices, Beliveau, Barbara C., 1984, Vol. VII, No. 2: 69-83.

ABSTRACT
While the literature on reinsurance typically stresses risk-spreading as its primary function, recent work drawing on the literature of corporate finance indicates that this may not, in fact, be true. This paper demonstrates that even if reinsurance is not an efficient means of spreading risk, its use may be explained by its ability to transmit information concerning a firm's financial status to the market.