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Contract between the Reinsurer and the Ceding Company stipulating the manner in which insurance written on various Risks is to be shared.
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The Reinsurance Treaty of June 18, 1887 was an attempt by German Chancellor Otto von Bismarck to continue to rally with Russia after the League of the Three Emperors had broken down in the aftermath of the 1885 Serbo-Bulgarian War.
Facing the competition between Russia and Austria–Hungary on the Balkans, Bismarck felt that this agreement was essential to prevent a Russian convergence toward France and to continue the diplomatic isolation of the French so ensuring German security against a threatening two-front war. He thereby hazarded the expansion of the Russian sphere of influence toward the Mediterranenan and diplomatic tensions with Vienna.
The secret treaty signed by Bismarck and the Russian Foreign Minister Nikolay Girs was split in two parts:
As part of Bismarck's system of "periphere diversion" the treaty was highly dependent on his personal reputation. After the dismissal of Bismarck, his successor Leo von Caprivi felt unable to obtain success in keeping this policy, while the German Foreign Office under Friedrich von Holstein had already prepared a renunciation toward the Dual Alliance with Austria–Hungary.
When in 1890 Russia asked for a renewal of the treaty, Germany refused persistently. Kaiser Wilhelm II believed his own personal relationship with Tsar Alexander III would be sufficient to ensure further genial diplomatic ties and felt that maintaining a close bond with Russia would act to the detriment of his aims to attract Britain into the German sphere. Like the ongoing Austro-Russian conflict, the Anglo-Russian relations too were strained at this point due to the gaining influence of Russia in the Balkans and their aims to open up the Straits of the Dardanelles which would threaten British colonial interests in the Middle East. However, having become alarmed at its growing isolation, Saint Petersburg as Bismarck had feared entered into the Franco-Russian Alliance in 1892 thus bringing to an end the French isolation.
In 1896 the treaty was exposed by a German newspaper, the Hamburger Nachrichten, which caused an outcry in Germany and Austria-Hungary.
The failure of this treaty is seen as one of the factors contributing to World War I, due to Germany's increasing sense of diplomatic isolation.
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