Explain what“$3M xs 2M”means.

 Explain what“$3M xs 2M”means.

The “xs” reads as “in excess of”. “$3M xs $2M” means a excess of loss reinsurance treaty, which the primary insurer keeps the attachment point of $2M, while the reinsurer is liable for the balance of the loss above the attachment point witha ceiling figure as $3M.