Alternative Risk Transfer
Mind the GAP: Strategies for Managing
By assuming a predetermined level of risk, you and/or your client retain the underwriting profits and investment income derived on our programs. In addition, these programs can be structured in the most tax efficient manner through our Bermuda affiliated insurance carrier and one of our “A” rated domestic carriers.
Collateralization represents an extraordinary liquidity burden that is both expensive and impacts investment strategy. This collateral burden is often exacerbated by security concerns a cendent may have regarding the ART entity. This situation, combined with a tighter more expensive credit market has sent captive owners in search of ways to reduce or better manage these risks.
The three types of collateral captives typically post
- Common sense ways to manage and reduce these collateral requirements
- Alternative collateral – Aggregate and adverse development reinsurance, Loss portfolio transfers (LPT’s)