Our Business
We acquire and reinsure insurance and reinsurance run-off
We acquire companies in run-off and provide compelling reinsurance solutions for insurance and reinsurance legacy portfolios.
Premia Holdings Ltd. is a leading reinsurance group with operations in Bermuda, the United States, the United Kingdom (including Lloyd's of London) and Continental Europe that is focused on sourcing, structuring and servicing run-off business. Premia has assumed over $5 billion in insurance liabilities and is well equipped to handle additional acquisitions and reinsurance transactions in the nonlife run-off market.
Premia Reinsurance Ltd. has a financial strength rating of “A” by Kroll Bond Rating Agency and “A-” by A.M. Best. At Lloyd's of London, where Premia operates Syndicate 1884, is rated “A+” by A.M Best and “AA-” by S&P and Fitch.
Why Reinsure
There are a number of reasons why insurers decide to sell or reinsure run-off books of businesses:
- Release capital
- Address regulatory or rating agency issues
- Exit insurance lines with low profitability and/or low growth
- Discontinue strategically unattractive parts of acquisitions
- Limit the level of management distraction in operating non-core
There are a number of reasons why insurers decide to sell or reinsure run-off books of businesses:
- Release capital
- Address regulatory or rating agency issues
- Exit insurance lines with low profitability and/or low growth
- Discontinue strategically unattractive parts of acquisitions
- Limit the level of management distraction in operating non-core businesses
- Manage claim volatility in results
- Achieve finality by selling or reinsuring liabilities
Targeted Opportunities
Ceding Company Motivation/Structure
Premia can assist with changes in company motivation and structure.
Run-off Issues
Too much volatility in results, which impacts market cap; management wants and needs all energy and focus on the core business.
Capital Issues
Capital constrained or need to improve ROEs.
Structure Issues
Define scope of the
Ceding Company Motivation/Structure
Premia can assist with changes in company motivation and structure.
Run-off Issues
Too much volatility in results, which impacts market cap; management wants and needs all energy and focus on the core business.
Capital Issues
Capital constrained or need to improve ROEs.
Structure Issues
Define scope of the deal, how finality is achieved, (whether legal entity can be sold, reinsurance structure), staffing (whether to retain staff or outsource to reinsurer), accounting (retrospective vs. prospective reinsurance).
Information Requirements for Indication
Premia can assist with managing information requirements.
Actuarial
Independent/in-house actuarial reports, paid and incurred loss triangles, payroll and earned premium by state/by year/class code (WC), historical rate change (by LOB).
Claims
Loss runs, litigation reports, gross/net paids, claims counts by year — closed and opened.
Reinsurance
Structures in place, ceded asset/underlying methodology, recoverables by market/disputes.
Example Solutions
Example Solutions
Premia offers solutions for a variety of insurance and reinsurance needs, with a focus on the acquisition and reinsurance of run-off liabilities.
Reserve Deficiency
Company seeks to address reserve deficiency and restore credibility with stakeholders, including rating agencies, shareholders and trading partners.
Premia Solution: Quickly ta
Premia offers solutions for a variety of insurance and reinsurance needs, with a focus on the acquisition and reinsurance of run-off liabilities.
Reserve Deficiency
Company seeks to address reserve deficiency and restore credibility with stakeholders, including rating agencies, shareholders and trading partners.
Premia Solution: Quickly tailoring a reinsurance solution to address reserve deficiency and future volatility, allowing management to put the past behind it and focus on the future. Premia has the ability to address non-core lines of business or subsidiaries via reinsurance or acquisition.
Insurance M&A
Eliminating non-core lines or subsidiaries in a sale can enhance value.
Premia Solution: Providing time of sale, value enhancing solutions for buyers and sellers with respect to non-core lines of business or subsidiaries. Generally prospective accounting treatment for such reinsurance solutions under US GAAP.
Capital Requirements / Releasing Capital
Higher regulatory capital requirements and the higher cost of funds increases the need for efficient capital solutions
Premia Solution: Providing tailored, long-term reinsurance solutions to reduce the capital held against non-core lines of business, allowing clients to redeploy and optimize their capital position for higher returns.
Captive and Orphan Subsidiaries
Industrial group may want to sell a subsidiary holding the legacy exposure.
Premia Solution: Acquire the subsidiary and run it off with the potential to repurpose the subsidiary. Allows sellers to deconsolidate and avoid volatility and distraction of dealing with the unwanted exposure.
Industrial M&A
Many industrial companies may have exposures that the acquirer would like to eliminate at acquisition. For example, target may have exhausted certain coverage and the exposure is net to the company.
Premia Solution: Providing a time of sale insurance policy covering the unwanted exposure.