Cession

Remember that whole Lincoln thing about secession? Union Army/Yankees; Southern Army/ "Rebs"? Yeah, that...Well, this comes from the same root word as "secession." "Ceding" means giving up property or another asset. Sticking to historical subjects, it can refer to territory, often after a war. Sometimes the victor makes the loser officially surrender a territory. The U.S. getting Puerto Rico from Spain...that was a cession.

Alright, so that's the general definition. It also has a specific usage in the insurance business. A "cession" in this context is the part of an insurance policy that is given to a reinsurer. If an insurance company takes on a policy, but decides its a little too much risk to absorb, it will seek some reinsurance (another insurance company that will back them up...insurance for insurance companies). The part given to the reinsurer is called the "cession." The insurance company giving up part of the policy is called the "ceding company."