Financial institutions purchase non-payment insurance not only for the individual exposures described above, but also across entire portfolios and in the context of structured finance transactions.
Using insurance in this context offers the same capital, risk transfer and balance sheet benefits as for individual exposures, but often on a larger scale that delivers greater efficiencies.
Our clients value our input at all stages of the transaction process, from early-stage feasibility studies to structuring and ultimately execution. We ensure that a transaction not only achieves an institution’s goals but also gets the best support from the insurance market in both the immediate and long term.
For example, we help clients source financing or investment partners through bespoke asset-backed lending structures with an embedded insurance element. This gives them access to cheaper funding and highly efficient off-balance-sheet treatment for their exposures.
As well as funding transactions, we work on unfunded risk transfer transactions for portfolios. Here, we help financial insitutions manage their balance sheet or achieve significant risk transfer on a transaction to manage regulatory capital.
To deliver all these solutions, we must translate the needs of clients and insurers alike into workable solutions – and navigate complex accounting, legal and other rulesets.
Thanks to our deep relationships with the insurance market, and in-house experience of banking, law and underwriting, we are well placed to support our clients’ most challenging transactions.