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Client success stories

UK subsidiary of leading global insurer

Ceded commutation

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Exit solutions – Ceded commutation

 

The Client’s requirements

•Targeting rating improvement through removal of credit risk associated with reinsurance assets from 1992 and prior business
•Supplemental resource to small in-house team to achieve meaningful results over 12 month project
•Subsequent project expansion for 9 months covering wider business scope (later years and syndicate business) following phase 1 success

 

Our solution

•Team of 3, at peak, working primarily on insourced basis within client’s London offices
•Utilisation of the team’s established contacts with reinsurers of the client, including many counterparties known to often be reluctant to enter commutation negotiations
•Data management and reinsurance security review to the client’s relationship with reinsurers at group and individual legal entity thereby providing reliable numbers which could be used throughout negotiations

 

Services/Value delivered

•60 individual commutations completed with reinsurers during first 12 months, collecting multi million dollars of reinsurance assets
•Counterparties included reinsurers from Middle and Far East, Americas, Russia and Eastern Europe
•Removal of significant reinsurance debt credit risk
•Complimentary project management service provided to implement STRIPE, enabling client to process reinsurance transactions directly through to reinsurers

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