Large multi-line carrier investigates semi to full closure
A large U.S. based insurer has been carrying a diverse portfolio of assumed liabilities accrued on reinsurance written around the world. They understand that each closure mechanism available to them to achieve finality has its own unique characteristics. Likewise, each slice of their portfolio requires a unique approach.
Apetrop USA has specific knowledge and utilization of each mechanism various jurisdictions afford; Schemes of Arrangement, Part 7 transfers, Rhode Island Reg 68, Vermont’s LIMA legislation, reinsurance, commutation, outsourcing. Apetrop was able to provide the client with an independent consultant to offer perspective on regulatory issues, cost, time, reputational risk and implications of semi to full closure.
Self Insured Corporation allowed final closure
An Apetrop USA client had incorporated in 1995 to self-insure for workers compensation cover for their member companies. A few years later, when the market demonstrated cheaper premiums than their program offered, they closed the operation. However, given the nature of the cover, the state regulator required the corporation to maintain collateral in order to satisfy any claim which may have arisen for the ultimate lifetime of any possible claimant.
Even though the corporation had ceased operations, they had to continue filing tax returns, maintain collateral and stay in play for an additional 18 years – until Apetrop USA provided a solution. Apetrop USA located a qualified buyer to acquire the liability, thus enabling the state to allow full and final closure of the corporation.
Timber company selling capabilities limited by unrelated copper mine
The owner of a timber company wanted to sell their operation but was limited due to affected liability which arose from an adjoining, unrelated copper mine. Apetrop USA found a buyer who was interested in buying the rights to the liability and thus enabled the timber company to sell their operation.
Hospital navigated difficult sale of captive
The U.S. owner of a Cayman domiciled captive was looking for a full sell. It was a rather difficult proposition, but Apetrop USA placed them with a buyer who worked with them to navigate each issue.
Chemical company closes residual claims exposure for work comp
The German parent company of this U.S. based subsidiary had charged them with closing runoff work comp claims in their captive company. While the full sale of the captive was explored, Apetrop USA found that the sale of the claims alone was the optimal solution.
Bally’s closes captive immediately
Bally’s Total Fitness Corp had a captive subsidiary named Lincoln Indemnity. Apetrop USA was retained by Bally’s to commute all outstanding liability against Lincoln Indemnity from an insolvent cedant/fronting company. In a matter of three months, Apetrop was able to discover, analyze and commute the residual policy with the problematical cedant, resolving the claim and returning their historical deposit. This enabled Bally to close the Lincoln Indemnity captive immediately, saving them money both from the transaction itself, and the ongoing costs of keeping the captive open for an indefinite period, thus achieving their ultimate goal of finality and closure.
German reinsurer resolves complicated reinsurance balance
The General Counsel of this large insurer approached Apetrop USA to resolve a complicated reinsurance balance. While the size of the balance was relatively large, the main concern was the contract, the involvement of a large TPA and the need to maintain a healthy working relationship with the parent of the reinsurer. Apetrop USA was able to collect the balance in full. This also facilitated a smooth transition to a productive relationship between cedant and reinsurer moving forward.
Captive formation for a company actively pursuing acquisitions
An oil pipeline and facilities construction and maintenance company was focused on growth by acquisition and predicted they would be a $1 Billion company within seven years. They contacted Apetrop USA about the possibility of forming a captive. While their growth goal would eventually put them in the right profile for a Pure Captive, their current size did not warrant it. Apetrop provided them with options which would adapt with their growth.
Trucking company sets up captive
With a fleet of cargo trucks and no insurance cover, this trucking company had two needs; a policy to cover them in the short term and an interest in setting up their own captive insurer. Apetrop USA found a carrier and then walked them through the process of setting up a captive based on their current and future needs.
Construction company set up Surety captive
Decommissioning large stadiums and New York skyscrapers is a very complex process. Cost management and adherence to a budget is imperative. In order to protect themselves, most companies buy Surety cover. Apetrop USA’s client had projects that were so reliant on meeting their deadlines and budgets that they felt a captive set up for the sole purpose of Surety cover was in their best interest.
Haiti investor group explores captive set up
Apetrop USA discussed the proposition of a captive insurer which would be established for the investors in a fund which focused on businesses in Haiti. The captive would be formed and owned by the investor group and would also insure lines of business which those companies in Haiti would need in their formation and growth.
Surgeon group explores captive set up
A risk manager approached Apetrop USA to better understand how to provide a captive solution for his clients. His client base was composed of two groups; one had a focus on cyber exposure, the other was a surgeon group who had developed a technology used in hip replacement. The Medical and Professional Liability issues surrounding the surgeon group were very large and previously untested.
Faith based organization explores captive set up
A church with a national presence investigated the alternatives available to them to their commercial insurance. They were paying an immense amount of premium each year and rarely submitting claims. Their needs focused on property and auto cover. They had not considered the casualty exposures they could also put into a captive.