Run off

There are a number of options available to businesses managing discontinued liabilities – which one is right will depend on the nature of the discontinued business as well as the constraints and objectives of the capital providers.

Traditional run-off

Our team is equipped to add value at all stages of the run-off cycle, from developing strategies for entering run-off through to exit strategies for finality and closure. Based upon the agreed run-off strategy, we provide a dedicated team to manage the process from start to finish. As part of that service we can also tackle the difficulties associated with managing a run-off in-house, such as lack of staff motivation and retention. The management reporting developed by PRO allows clients to control their business without a significant strain on management time.

Traditional run-off strategies allow clients to:

• Ensure liabilities are contained and reduced wherever possible by proactive claims management
• Maximise assets via reinsurance recovery
• Control ongoing operational costs
• Manage cash requirements
• Enhance their reputation
• Provide exit solutions if required.

Accelerated run-off

Our team is equipped to add value at all stages Increasingly, clients require a strategy which involves more than the ongoing management of discontinued liabilities – one which delivers improved balance sheet management and the potential release of capital.

For these clients, an accelerated management of the run-off is the answer. Achieved through commutations, it enables them to reduce insurance liabilities and realise reinsurance assets. It also minimises risk, reducing the portfolio to a more manageable level and creating the opportunity for final closure.

The strategy is particularly relevant in circumstances such as:

• Reducing liabilities and realising reinsurance assets on large complex books to facilitate closure
• Maximising reinsurance assets on highly geared books by commuting reinsurance in advance of closure
• Reducing liabilities on a step by step basis for volatile portfolios where liabilities or data is unknown.

As well as allowing the potential release of reserves, an accelerated strategy also delivers a saving in management expenses.

We provide a wealth of experience in developing commutation strategies complemented by skilled commutation resource.

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