PRO Insurance Solutions

(Re)insurance Asset Recovery

Expert (re)insurance asset recovery is a critical element of any efficient cash management strategy. Clients call on the skills of our reinsurance recovery team to protect their balance sheet, improve liquidity and optimise their use of capital.

Our (re)insurance recovery services include the following specialist activities:

• Review of reinsurance security, including the adequacy of bad debt provisioning
• Tracking and agreement of (re)insurance debt
• Protection of assets via standstill agreements and, if necessary, arbitration – allowing more in-depth discussions without fear of being time barred
• Recovery of (re)insurance assets from US, London and other international reinsurers and brokers
• Dispute resolution via collection, arbitration, mediation, debt trading or commutation
• The ability to purchase discontinued reinsurance receivables focusing on international insolvent and solvent problematic debt.

As well as offering the full breadth of recovery skills, we often work alongside our commutation team to deliver a truly comprehensive collection service.

The benefits

Effective (re)insurance asset recovery offers several key advantages. Our team’s experience in collection of international reinsurance receivables enables our clients to benefit from accelerated cash flow, improved liquidity, optimised use of capital and savings in resources, both human and financial.

Proactive recovery also mitigates a number of risks that could otherwise have a negative impact on the balance sheet. These risks include reinsurance failure, deterioration of the aged debt profile and tighter restrictions on the valuation of reinsurance assets for regulatory returns.

We can resolve unsatisfactory broker service levels and overcome shortages in available collection resource, particularly where specialists are required to resolve complicated dispute resolution.

Also, in partnership with our parent company Swiss Re, we can provide debt purchase solutions. In exchange for a cash price, we assume the benefits of insurance and reinsurance policies, and shoulder all subsequent (re)insurance asset recovery risks. This solution provides liquidity, improves your balance sheet, removes uncertainty and provides administration savings.

In more general terms, our (re)insurance asset recovery work is also helping to tackle key market issues such as increasing claim disputes, willingness to pay, the erosion of “follow the fortune” clauses, credit risk, setoff and insolvency procedures.

How we work

We take a tailored approach to (re)insurance asset recovery because we know that each client has a unique set of issues that will impact reinsurance collection. Our goal is to develop a bespoke solution that will meet their collection objectives, address constraints and employ the most appropriate method for the situation. Common targets include geographical territories, insolvencies, UK solvent scheme filings, problem individual reinsurers and specific claim disputes.

For each project we assign a team from our extensive pool of staff, selecting the people with the most relevant experience and contacts. We also appoint a reinsurance recoveries manager who is responsible for coordinating our service and managing the client relationship.

Fees

Our fee structure varies according to the needs of our clients. We have a variety of different pricing structures, including competitive hourly rates, fixed budgets, contingent percentage of (re)insurance assets realised or a combination of these.

For debt purchase opportunities, the due diligence and pricing process carries no fee. Clients can then consider the offer price against their current balance sheet position.

Our team

PRO has a dedicated team of more than100 people specialising in (re)insurance asset realisation through debt collection and commutation. This team has a vast amount of experience in collecting international reinsurance receivables on behalf of over 60 international clients and is already responsible for collecting $billions of (re)insurance assets.

In addition to our core (re)insurance asset recovery experience PRO has particular expertise in making recoveries from insolvent companies and Solvent Schemes of Arrangement. We also have a market-leading knowledge of managing and interacting with pools, and dealing withthe intricacies and problems that surround their operation.

All of these specialist skills, together with our international expertise and our debt purchase solutions, combine to offer a uniquely effective answer to our clients’ international receivable problems.