Delivering certainty
and balance sheet
improvements.
Solutions for problematic debt
Outstanding debts with troubled (re)insurers and/or creditors of insolvent estates can have a severe impact on your company’s performance.
We can free you from a range of challenges including:
- Collecting slow or non-moving debts from problematic reinsurers
- Dealing with smaller debts you no longer have the resources to manage cost-effectively
- The time-consuming distractions of dealing with reinsurers in particular territories
- Insolvent debts that will take years to realise and are inadmissible as assets
We can purchase problem debts from you by taking an assignment of the rights to current and future collections under the policies. Taking a scaleable approach to debt purchase, we will consider single-policy transactions, entire books of business, single reinsurers or whole portfolios.
We can quote on a one-off-payment basis or work with you to tailor the solution that provides the best fit with your needs from the transaction.
Our debt purchase solutions enable you to:
- Increase liquidity by accelerating cash flow
- Achieve certainty on (re)insurance asset values
- Improve your balance sheet by releasing bad debt provisions
- Reduce administration costs
- Refocus on core business activities
- Solve the growing problem of collecting aged debt
When you assign your debt to us, in exchange for an immediate cash payment we assume the right to receive all current and, where agreed, any future funds due under the relevant (re)insurance policy or policies.
Legally, the underlying contractual relationship between assured and the insurer remains in place. An assignment agreement signed by both parties, however, explicitly details the benefits assigned and the consideration paid for those benefits. This agreement includes covenants and warranties on the benefits assigned and what each party will or will not do.
It is simple and straightforward for us to quote and involves minimal cost or disruption to your business. All we need is limited access to your organisation so we can carry out a due diligence analysis on the debts in question.
The specific details of the process depend on the nature of the business, and will differ for creditors of insolvent estates and general reinsurance assets.
Debt purchase process
What our clients say
"Pro's services provided us the opportunity to sell old debt in a cost-effective manner, allowing us to realise some immediate benefits and eliminate the administrative burden of collecting dividends from the liquidators.
Their delivery of undoubted market expertise, knowledge and the services we received, and have continued to receive, were very professional and we have appreciated the personal contact from Pro's experienced staff."
Chaucer Syndicates Limited
