Delivering Value

Distressed insurance asset acquisitions

As active partners with a large institutional investors, RunOff Re.Solve identifies, carries out due diligence, seeks to acquire and manages distressed assets affecting insureds, insurers and reinsurers, captive owners and participants in securitized transactions and their counterparties throughout the world.

These assets include:

  • agreed claims in insolvent estates;
  • reinsurance recoverable amounts on insurer and reinsurer balance sheets
  • and legal entities in run off.
  • We also seek to identify and acquire more non-traditional assets where the current owner seeks to monetize its position.
  • Once acquired, RunOff Re.Solve manages the full process of monetizing these assets.

Ideally, we would acquire these assets in exchange for an immediate cash payment. Our close understanding of the particular evaluation, due diligence, claimant considerations and regulatory considerations across a range of different distressed asset classes and regulatory jurisdictions means that we can bring the deal to a close in the quickest, most efficient and most mutually beneficial way.

If we acquired these assets, you or your clients would benefit from the maximization and acceleration of monetization. As we would oversee administration of the assets, you or your clients would also achieve finality. Where you are managing the asset collection process for your client, that process and your involvement may continue under our supervision.

Where you and your clients might benefit

Insurers and reinsurers

The types of distressed assets we are seeking to acquire that may be of interest to your company include reinsurance recoverable balances. We are also looking at claims against insolvent insurers or reinsurers and the anticipated recoveries from solvent and insolvent schemes of arrangement or other forms of accelerated exit.

Our interest in acquiring recoverable balances from financially impaired reinsurers could be of particular benefit to small to mid-sized insurers, which may lack the resources to pursue recovery or be less able to absorb Schedule F penalties. Similarly, large groups may wish to deploy their resources elsewhere.

Other types of businesses that could find early sale advantageous include companies seeking accelerated closure mechanisms for their own legacy exposures or side car investors who are looking to cash out of their investments, but may be prevented by disputes over loss reserves.

Captive Managers

The types of distressed assets we would be seeking to acquire that may be of interest to you as a captive manager include reinsurance recoverable balances. They also include captive collateral replacement in cases where your clients have pledged collateral to secure their reinsurance obligation to a fronting carrier.

Brokers

The types of distressed assets we would be seeking to acquire that may be of interest to you and your clients include reinsurance recoverables or exposures to insolvent or financially impaired companies.

In turn, if you or your clients are looking to implement or close a scheme of arrangement process, or other form of accelerated exit, sale could provide the capital to expedite closure.

Lawyers and Accountants

The types of distressed assets we would be seeking to acquire that may be of interest to you and your clients include exposures to insolvent or financially impaired companies. Sale would help to accelerate the release of funds in a range of cases such as insolvent schemes of arrangement, closure of insolvent estates or front carriers looking for protection from potentially impaired captive insurers.

You might also consider sale in instances where you manage the transactions for side cars investors that are looking to cash out of their investments, but may be prevented by disputes over loss reserves.

In turn, if you or your clients are looking to implement or close a scheme of arrangement process, sale could provide the capital to expedite closure.

Corporate Risk Managers

The types of distressed assets we would be seeking to acquire that may be of interest to you include reinsurance recoverables or exposures to insolvent or financially impaired companies.  They also include captive collateral replacement in cases where your company or your company’s captive insurer has pledged collateral to secure either a self-insured retention of the captive’s reinsurance obligation to a fronting carrier.

Regulators

The types of assets we would be seeking to acquire that may be of interest to you include reinsurance balances owed by solvent carriers to insolvent insurers in liquidation in your jurisdiction.  Sale of these reinsurance assets would help to accelerate the release of funds in a range of cases such as insolvent schemes of arrangement or closure of insolvent estates; getting money to creditors and guaranty associations and removing the expense of continued estate administration.

Please contact us if you would like to discuss your portfolio or work with RunOff Re.Solve to develop a solution.