COMMERCIAL RUNOFF. Advantages (vs. rehab or liquidation) Preserves greater estate value for the satisfaction of insurance liabilities. Preserves greater.

Slides:

Advertisements

Similar presentations

Irwin/McGraw-Hill 1 22 © The McGraw-Hill Companies, Inc., 1999 Corporations in Financial Difficulty Baker / Lembke / King.

Advertisements

Claims Reserving for Non Life Insurance Craig Thorburn, B.Ec., F.I.A.A. Phone

Understanding Financial Statements

Discussion Section #1 Financial Accounting

Financial Management and Securities Markets Chapter 16 *modified by other sources.

1 Finance Basics Rania A. Azmi University of Alexandria, Department of Business Administration.

Reserve Variability Modeling: Correlation 2007 Casualty Loss Reserve Seminar San Diego, California September 10-11, 2007 Mark R. Shapland, FCAS, ASA, MAAA.

Strategic Management Financial Ratios

Finance Structures and Issues in the UAE Financial structure is a mixture of long–term debt and equity that a company uses to finance its operations, it’s.

Uses of Accounting Information and the Financial Statements

An Overview of Financial and Multinational Financial Management Corporate Finance Dr. A. DeMaskey.

FINANCIAL STATEMENT ANALYSIS RAJESH KEVIN SANJAY.

Financial Accounting: Tools for Business Decision Making

Chapter Outline 10.1Tax Benefits Defined 10.2Progressivity in Corporate Income Tax Rates Overview Numerical Example and Additional Insights Progressivity.

GAAP PowerPoint #4.  A formal record of the financial activities of a business  Includes four basic financial statements: ◦ Balance Sheet (Statement.

Insolvencies and the Current Regulatory Environment CAGNY June 3, 2004.

Ch.13 Financial Statement Analysis. Stockholders Financial Statement Analysis Creditors Will I be paid? How good is our investment?

Module 22 Operations of Flow- Through Entities. Menu (1) 1. Definition of a flow-through entity 2. Reporting the operations of a flow-through entity 3.

JUN 8 – 10, 2015 Segregated Accounts and Other Alternative Risk Transfer Structures 1.

Life Insurance in a Qualified Plan Chapter 13 Employee Benefit & Retirement Planning Copyright 2009, The National Underwriter Company1 What is it? Qualified.

Financial Markets and Institutions. Financial Markets Financial markets provide for financial intermediation-- financial savings (Surplus Units) to investment.

An Overview of Financial Management Class Objectives Read, interpret, and analyze financial reports Manage working capital and profits Understand the.

R L Captive Solutions Cost Control Presentation by Travis Lantis R L Consulting, LLC.

Investor presentation Interim financial results 30 June 2001.

HFT 2401 Chapter 1 Introduction to Accounting. Accounting A Means to an End  Provides answers to questions  How much cash do we have  What was our.

1 RBC AND DST General Descriptions By Masdar. 2 Rational for RBC Formula Risk Based Capital provides a means of setting capital standards that recognizes.

Types of Insurance. Private Insurance – Life and Health – Property and Liability Government Insurance – Social Insurance – Other Government Insurance.

THE USE OF ADMINISTRATIVE BANKING AND INSURANCE DATA 1 Presented by Hazel Corbin Statistics Adviser, ECCB Palm Haven Hotel Saint Lucia 3 to 7 February,

1 Introduction to Company Accounting Learning Outcomes:  Understand the concepts and the environments associated with companies  Understand different.

©2012 McGraw-Hill Ryerson Limited 1 of 30 Learning Objectives 1.Identify reasons for a foreign investment decision (later analyze). (LO1) 2.Examine the.

DR MAREK PORZYCKI JAGIELLONIAN UNIVERSITY KRAKOW Insolvency law - basics.

Insolvency Tom Crossland. The road to ruin Definitions Financial Services & Markets Act - IPRU(INS) Companies Act Insolvency Act –Balance sheet –Cash.

Winding-up and exit from the market »1»1 Monica Lindeen Insurance Commissioner State of Montana.

Chapter 18 Capital & Capital Market Financial Management  It deals with raising of finance, and using and allocating financial resources of a company.

30/05/20161 Captives How they work *Please note; This presentation is used as an information aid and interprets the essentials of captives and protected.

DR MAREK PORZYCKI JAGIELLONIAN UNIVERSITY KRAKOW Insolvency law - basics.

Learning Accounting = Creating Wealth Accounting Equation RAHUL JAIN (Striving for excellence) BCOM (H), MBA, FCS.

Financial Statement Analysis. Limitations of Financial Statement Analysis Differences in accounting methods between companies sometimes make comparisons.

1 Introduction to Company Accounting Learning Outcomes:  Understand the concepts and the environments associated with companies  Understand different.

Death Benefit Only (DBO) Plans Chapter 29 Tools & Techniques of Life Insurance Planning  What is it?  An executive benefit that promises payments.

Chapter 18: FINANCIAL STATEMENT ANALYSIS Due date for summative is the last day, December 19.

Analyzing Financial Statements

VEBA Welfare Benefit Trust Chapter 59 Employee Benefit & Retirement Planning Copyright 2009, The National Underwriter Company1 What is it? A type of fund.

Copyright © 2008 Pearson Addison-Wesley. All rights reserved. Chapter 3 Introduction to Risk Management.

Introduction to Accounting. Definition of Accounting Accounting is a language of business. As the American Accounting Association: “ accounting is the.

© OnCourse Learning. All Rights Reserved. Basic Real Estate Investment Learning Objectives  Define and be able to calculate equity, leverage, cash flow,

HFT 2401 Chapter 1 Introduction to Accounting. Accounting – A Means to an End  Provides answers to questions  How much cash do we have  What was our.

AN OVERVIEW OF CORPORATE FINANCING

Financial Management Decisions n Investment: What assets to own? n Financing: How to pay for those assets? n Dividend: What to do with Net Income?

Insurance & Reinsurance Runoff CAS Annual Meeting Chicago, Illinois November 14, 2007 Dave Ostrowski, FCAS, MAAA RiverStone Resources.

Chapter McGraw-Hill/Irwin Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. 17 Financial Leverage and Capital Structure Policy.

BASICS OF ACCOUNTING Its importance in actuarial world Baltic Actuarial Summer Days 2008, Estonia Kristīne Lomanovska, Inga Helmane.

Alternative Risk Financing Vehicles. Began development in 2010 Launched first captive in 2011 Current Active Captive Portfolio ‒ Legacy health – Heterogeneous.

The Run-Off Environment – Considerations for the Reserving Actuary Jason Russ, FCAS Principal Milliman, Inc.

1.9.3.G1 © Family Economics & Financial Education – Revised April 2005 – Housing Unit – Renting vs. Owning a Home Funded by a grant from Take Charge America,

Module 1: Basics of Financial Statements. Balance Sheet Equation Assets: companies own cash, receivables, inventories, real estate, equipment, securities,

Term Insurance  Characteristics  Payments at death only  Contract expires at the end of the term  When is the use of this tool indicated  Provide.

An Overview of Financial and Multinational Financial Management.

Financial Ratios.

Profitability Ratios Liquidity Ratios Solvency Ratios Other Terms

Career Opportunities in Finance

1.01 Generally Accepted Accounting Principles – Financial Statements

CHAPTER 1 An Overview of Financial Management

PROFIT AND CONTINGENCIES (FIN-28)

International Insolvency Law 1. Insolvency law - basics

Corporate Finance John Collins.

International Insolvency Law 1. Insolvency law - basics

1.01 Generally Accepted Accounting Principles – Financial Statements

Liquidity Analysis FINA321 Abdullah Al Shukaili

Introduction to Financial Statements

Presentation transcript:

COMMERCIAL RUNOFF

Advantages (vs. rehab or liquidation) Preserves greater estate value for the satisfaction of insurance liabilities. Preserves greater estate value for the satisfaction of insurance liabilities. Faster and more effective claim resolution. Faster and more effective claim resolution. Avoids protracted delays in the collection of reinsurance recoverables. Avoids protracted delays in the collection of reinsurance recoverables. Quicker resolution of the estate obligations. Quicker resolution of the estate obligations. Lower administrative cost during the pendency of the runoff. Lower administrative cost during the pendency of the runoff.

Disadvantages Regulators are not yet comfortable with nonjudicial runoff of distressed insurance companies. Regulators are not yet comfortable with nonjudicial runoff of distressed insurance companies. Regulators perceive greater risks in supporting a commercial runoff vs. a proceeding. Regulators perceive greater risks in supporting a commercial runoff vs. a proceeding. Permitted practices may be needed to sustain accounting solvency. Permitted practices may be needed to sustain accounting solvency. Ultimately a proceeding may not be avoidable. Ultimately a proceeding may not be avoidable.

Is Every Financially Distressed Insurance Company a Viable Runoff Candidate? Accounting vs. economics. Accounting vs. economics. Cash is king and queen. Cash is king and queen. Operation must be cash flow neutral or better. Operation must be cash flow neutral or better. Investment income and operating expenses. Investment income and operating expenses.

Role of the Regulator Political issues. Political issues. Second guessing by non-domiciliary regulators. Second guessing by non-domiciliary regulators. Cooperation. Cooperation. Permitted accounting practices or allowances. Permitted accounting practices or allowances.

Types of Runoffs Traditional. Traditional. Nonjudicial liquidation. Nonjudicial liquidation. Direct business vs. reinsured. Direct business vs. reinsured. Liquidation priorities. Liquidation priorities. Other non-insurance creditors. Other non-insurance creditors.

The “End Game” Payment of dividends during the pendency of the runoff. Payment of dividends during the pendency of the runoff. Challenges of extracting excess value. Challenges of extracting excess value. Winding up under a formal proceeding. Winding up under a formal proceeding. Creation of a liquidating trust outside of a proceeding. Creation of a liquidating trust outside of a proceeding. The new Rhode Island statute. The new Rhode Island statute. Conversion of an insurance company to a “C” corporation. Conversion of an insurance company to a “C” corporation.

Other Issues ADC and LPT covers ADC and LPT covers Investment quality and duration Investment quality and duration Liquidity Liquidity

Role of the Actuary in a Runoff Looking through the rearview mirror. Looking through the rearview mirror. Exposed but not recognized “EBNR”. Exposed but not recognized “EBNR”. Statistical challenges. Statistical challenges. Modeling. Modeling.