PRO Insurance Solutions

Thinking delivered

Reinsurance Solutions

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.

Reinsurance Solutions (Practical Finality) ring-fences the whole or parts of the balance sheet by transferring liabilities to a financially strong reinsurer. The future operational costs and/or the costs of reinsurers default can be included. It releases the capital required to support liabilities by replacing it with a reinsurance cover.

Ensuring the security of reinsurers and the limit of cover is essential to ensure “practical finality”.
We are able to achieve this by sourcing reinsurance products from a selection of reinsurance partners.
We can then manage all ongoing operational issues, to best ensure that liabilities are contained within the reinsurance cover.

There are numerous benefits to Practical Finality:

It provides certainty by transferring liabilities, including an allowance for unforeseen deterioration, risk of reinsurer default, cost of management and other operating expenses. The transaction is relatively straightforward and can be completed quickly. Practical Finality is particularly suitable for large complex portfolios and it allows all aspects to be covered. Structuring transactions is flexible and there is an option to include loss corridors and profit commission. It is often the most effective solution for freeing up assets stranded overseas.