Withholding is a provision in a reinsurance contract whereby some or all of the premium due to the reinsurer, usually an unauthorized reinsurer, is not paid but is retained by the ceding company, or to allow the ceding company to reduce the reserve for unauthorized reinsurance. in its statutory declaration or be deposited in a loss escrow account for the purposes of payment of claims. The reinsurer’s assets, instead of cash, are “funds held by or deposited with reinsurers”.