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Reinsurers

Retrocession recoveries outsourcing

Letters of Credit resolution

Commutations

Retrocession recoveries

Our combined forty years of reinsurance recovery experience can assist in the notification, billing and recovery of retrocession losses. The required explanation and justification of underlying complex claims, the underlying reinsurance layoff and the subsequent retrocession cover requires detailed and succinct explanation if the retro cover is to be collected promptly.

We estimate that if reinsurance recoveries are typically collected in three months or longer the time line for retro recoveries is significantly increased. Like reinsurance recoveries in general delays in recoveries create cash flow and lost investment income issues as well as statutory penalty problems.

As more reinsurers providing retro cover go into runoff we anticipate these timelines to significantly increase.

Letter of Credit resolution

We have discovered over the last eight years a significant issue with old redundant letters of credit (LOCs) remaining extant long after the contract has gone dormant. Reinsurers are stuck paying annual fees and suffer loss of investment income on the funds segregated to secure the LOCs.

We offer a service designed to work with the banks and cedants to identify LOCs which are no longer required and work with the parties to have the LOCs cancelled/non-renewed resulting in the return of the collateral.

Commutations

Separately, or in conjunction with the LOC initiative, we can assist in the closure of exposures on a cedant or contract basis through commutation.

Gray Wolf has extensive experience in the commutation process and can perform the necessary analysis in conjunction with your actuaries, carry out the negotiations, address any problems raised in the process and complete the paperwork necessary to a successful commutation.

Cedants
Insured

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