PRO Insurance Solutions

• Capital Solutions

  • Legal Entity Purchase
  • Reinsurance Solutions
  • Part VII Portfolio Transfer
  • Debt Purchase

• Run-off Solutions

  • Run-off Portfolio Management
  • Commutation
  • Solvent Schemes of Arrangement
  • Audit & Inspection
  • Broker Collection Services
  • Claims Management
  • Strategic Planning
  • (Re)insurance Asset Recovery
  • Consultancy & Business Support

• Live Business Solutions

  • Underwriting Support
  • (Re)insurance Asset Recovery
  • Audit & Inspection
  • Commutation
  • Consultancy & Business Support
  • Claims Management

Legal Entity Purchase

More and more businesses are acknowledging the importance of proactively dealing with discontinued liabilities. Increased regulatory capital requirements to underwrite business, growing expectations of shareholders and the rising influence of rating agencies are just some of the reasons why.

PRO has a market-leading focus on developing strategies that bring finality to discontinued liabilities. This allows our clients to achieve closure of portfolios and, where possible, release surplus capital.

Legal Entity Purchase is a solution which allows owners to sell entities to achieve complete finality and has the additional benefit of releasing any surplus capital, allowing the company to focus on ongoing business.

We work with a range of leading capital providers to facilitate the sale process. Under this solution, an offer can be made to purchase the full share capital of a discontinued (re)insurance company, or the net asset value associated with a specific discontinued portfolio.

We have found that this solution is often of interest to shareholders of resource intensive portfolios, (re)insurance companies, groups looking to divest non-core, unprofitable portfolios and groups looking for more efficient capital allocation.

A sale can also be coupled with reinsurance backing from a major risk carrier. Following the sale, we handle all aspects of ongoing operations, greatly minimising potential damage to corporate reputations.

There are numerous benefits of disposing of discontinued business through a Legal Entity sale:

It is the quickest method of finality, with a time-line as short as 3-6 months from due diligence to transaction closure. This also offers true finality, whereas for a Scheme of Arrangement there remain the issues of residual debt and legal entity wind-up. Approval for the transaction is only required from the appropriate regulatory body. It releases the capital which has been tied up in a book. The considerable management time and costs in relation to non-core portfolios are removed.