Capital optimisation - currently the most challenging task facing top managers
- Capital optimisation/improvement of the solvency margin is becoming increasingly difficult.
Structured reinsurance - the advanced solution
- The surplus relief quota share is the more flexible, available and cost-efficient option for capital optimisation.
- It is suitable for low and high premium volumes.
- It transfers underwriting risk.
- The flexibility extends to volume, duration, costs and risk transfer.
- Multi-year stop loss protections are further alternatives to hybrid financing.
Need to complement traditional reinsurance? - Our concepts assist with a varying degree of risk transfer
- More cost-efficient reinsurance structures.
- Coverage for special situations.
- Protection of your company's whole account or portions thereof.
- Control of excess frequency when you increase your net retention.
Advanced Solutions and Solvency II
In addition to many other advantages of structured reinsurance, Advanced Solutions can assist in reducing solvency requirements, for example via:
- Tailor-made quota share contracts to reduce both the premium and reserve risks.
- Multi-year stop loss covers to reduce the volatility of net loss ratios.
- Frequency protection covers for catastrophe risks.
- With a holistic view on risk management you may identify risks not covered by the existing reinsurance protection.
- The Aggregate Cover protects risks being tail end driven by severity and/or frequency of losses.
- Hence the Aggregate Cover allows for optimising the capital allocation in an RBC environment by cutting e.g. the 99.5% Value at Risk.
- Have you given thought to enhancing your solvency margin or considered using hybrid capital or sub-ordinated debt but not structured reinsurance? We can provide you with a general or tailor-made comparison between these products.
- A review of your annual report, in particular the balance sheet and profit and loss account, combined with a face-to-face meeting, is a first step towards identifying potential points of interest. In individual discussions we can explore the details and devise tailor-made solutions for your company.