The art of a protected exit.
Expertise for all closure scenarios.
Whether you’re looking to manage legacy programs such as pension longevity or close a commercial (re)insurer, we’ve created a number of structures that can manage the changes your business requires.
There are many reasons your organization may choose to close its captive: the desire to eliminate the variability and volatility of long-tail liabilities, a change in company direction or market focus, rationalization in the aftermath of a merger, or the result of regulatory developments. Artex is seasoned in all possible scenarios. We have solutions and insight that aid you in developing the most efficient and cost-effective solutions, for better risk management.
Mitigate longevity risks with solutions for pension sponsors
Longevity risk – essentially the risk that retirees will live longer than expected and require additional, unaccounted-for pension payments – is a serious risk that cannot be managed through investment strategy alone, particularly in times of economic fluctuation. Artex as the market leader, offers risk transfer solutions to help mitigate this risk and secure certainty for a pension scheme’s future liabilities and member benefits.
Legacy liabilities exit solutions: many options, more opportunities
There are several options available, depending on the structure of the entity and the requirements of the domicile in which it is located. These options include a novation or loss portfolio transfer of all or a portion of the captive’s business, commutation, restructuring of liabilities and bringing finality to a book of claims – usually with fronting insurance or a reinsurer. Artex has expertise in creating better options that provide confidence and peace of mind.
Innovative solutions that lead to greater control
Our approach to Legacy risk reduces exposure on many fronts, including release from collateral requirements, full finality of claim obligations, balance sheet clean up and potential accounting benefits on acquisition of companies with contingent liabilities.
Our experience in assisting entities with a captive in run-off by novating contracts into a protected cell to reduce vehicle run-off expenses provides you better risk management in the short and long term. We can manage the captive through the liquidation process and reduce the amount of parent company management time by transferring the insurance risks into a protected cell. Our process uses a blend of market insight and expertise to serve firms seeking relief from the ongoing management and expense of a continuous claims process. We also aid companies:
- more than $500,000 in accrued liabilities
- that have inherited large portfolios of claims through mergers and/or acquisitions
- that have liabilities from discontinued operations
- with captive insurance companies in run-off
The power of global reach
We provide asset management with access to investment management firms in Guernsey and the UK. This advantage, aids in maximizing the use of assets to meet claim obligations while boosting returns. We can also manage your liabilities to wind down the captive in an orderly way until the end and to settle all interests of the insured. This is an excellent option for shareholders with an average risk appetite and return on capital and who can set fairly realistic claim resolutions.
To find out our how legacy and run-off solutions can help you, start here.