Fin Re Type 2 - Liability Reducing

Been trying to wrap my mind around Liability Reducing Financial Reinsurance
First off does financial reinsurance always apply to a block of business and not to a single policy?
The core reading says:
"The basic concept that the reinsurer agrees to pay all the claims over and above (100+x)% of what would be expected."
So for a block of business the insurer would expect to say have, say, $10m, of claims. If x = 10, and actual experience on the block of busines is $15, would the reinsurer then pay $4m ($15m - $10m x 1.1)?
Is it also correct to say that the $10m would be the realistic reserve but supervisory reserves would be, say, $18m and thereby using this reinsurance, the supervisory reserves reduce to $11m?
The core reading also goes on to state that:
"As the VIF emerges as cashflow, then the cedant recaptures the risks over time."
Is the VIF they talking about, basically the $1m ($11m - $10m), in my above example?
And I'm not quite undertanding what they mean by
"the cedant recaptures the risks over time."?
Thanks to anyone that can help clear this up for me!!