Loss Portfolio Transfer Case Study

Jul 15, 2019

Achieve Certainty in an Uncertain World

Loss portfolio transfers (LPTs) are structured transactions that package and transfer a portfolio of known and unknown losses to a commercial insurance company in exchange for a fixed amount of consideration or premium. With an LPT, the company is relieved of its balance sheet liability (as well as any required related collateral) and, as a result, can clean up its balance sheet and achieve certainty of expense for what previously was uncertain and potentially volatile expense recognition.