Chartis has introduced a loss portfolio transfer solution called Rolling Buyouts, which will be offered by its Alternative Risk division to help clients manage their historical retained liabilities and reduce the uncertainty of future adverse loss development.
Unlike traditional buyouts, in which a client typically transfers all historical retained liabilities to an insurer, the Chartis insurers’ Rolling Buyouts provide clients the opportunity to transfer liabilities in tranches, allowing for a myriad of combinations to accommodate specific needs and financial circumstances. Rolling Buyouts facilitate a fluid assumption of liabilities with a streamlined documentation process, whereby the client can monitor loss developments and cash flow to determine the scope and timing of each subsequent tranche.
“Insureds often take on large deductibles or self-insured retentions that become unattractive to manage over time,” said Joseph A. Davide, executive vice president of Alternative Risk. “With Rolling Buyouts, our clients can transfer their historical retained liabilities incrementally when it makes most sense for their circumstances.”
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