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This paper examines the efficiency of reassurance of Korean insurance firms by comparing with the efficiency of reassurance of French firms. We compare cession and retention level of reassurance, forms of contracts, demand for reassurance with respect to their size of insurance firms. We find that there exists earnings management differences between the two countries. In contrast with France, Korean insurance firms are likely to transfer desirable risks and cede the risks to foreign reinsurers. This leads to increase deficits in reassurance accounts and aggravate earnings. The reciprocity is not a prevalent method of risks transferring. Korean insurance firms need to develop their own solution system to evaluate risks to avoid rate increases, reduce cession to reinsurers, and increase retentions. Finally, they need to decrease debt level and increase capital level to increase solvency.