Retrospective solutions
- Loss portfolio transfers
- Adverse development covers
- Lloyd’s reinsurance to close (RITC)
- Insurance business transfers
An increasingly complex risk and capital environment is encouraging our clients to explore new ways of managing their balance sheets. The traditional risk transfer solutions remain core, but in the quest to drive stakeholder value, insurance company executives are increasingly willing to consider a range of alternative structuring techniques.
That’s where Gallagher Re’s Customised and Capital Solutions practice comes in. We work collaboratively with our geographic broking teams to understand client motivations before calibrating solutions that support them in achieving their target key performance indicator (KPI) metrics. This is becoming increasingly important as management teams look to deliver value in an incredibly challenging market environment.
Common client objectives include a desire to:
By taking the time to understand a client’s core motivations, we are better able to tailor our advice to meet their objectives and help them understand the implications of each available solution.
The types of solutions we facilitate include:
Our global team of more than 30 professionals operates from hubs in London, New York and Singapore. Leveraging the best of Gallagher group, our team has a broad range of skillsets — broking, actuarial, capital, accounting, claims and project management — that can be deployed in support of our client’s transaction.
We work with a product neutral approach, and have licences to transact reinsurance broking, legal finality via novation, or entity sales through our Securities business.
Gallagher Re’s high rate of deal-flow allows us to maintain strong relationships with all key counterparties. We leverage our executive level contacts to optimise client outcomes.
A European monoline mutual providing workers’ compensation insurance requested a long-term capital management tool because exposure to long-duration, prior year, loss reserves resulted in a significant capital charge allocated to reserve risk. The client was keen to explore ceding a proportion of its prior year exposures to reduce the associated charge, and wanted the capital management tool to facilitate:
Our solution was a Loss Portfolio Transfer structure with the following elements:
The main benefits of this solution met the client’s strategic priorities of capital relief (high priority), volatility protection (medium) and operational efficiency (low).