Let have an simple example: Without reinsurance Premium: 10000 Commission: 1000 Net cashflow: 9000 with reinsurance: Premium: 10000 Commission: 1000 Ceded premium: 5000 Ceding comission: 500 Net cashflow: 4500 the cash in flow without reinsurance are higher. So how come reinsurance can help with cashflow?
Reinsurance doesn't (necessarily) improve the overall cashflow to the insurer (and notice that you've left off claims and other expenses in your example!). But it can help cashflows in the sense that the reinsurance commission can to some extent offset the cedant's expenses.
