Premia offers solutions for a variety of insurance and reinsurance needs, with a focus on the acquisition and reinsurance of run-off liabilities.
Opportunities in the P&C Run-Off Sector
Growing Reserve Deficiency
In recent years, reserve positions have deteriorated across the commercial lines sector, which includes commercial property, commercial liability, and workers’ compensation. Additionally, insurers continue to have large, underfunded exposure related to environmental concerns.
Premia Solution
Acquire non-core lines of business or subsidiaries via reinsurance or acquisition. Prospective vs. Retroactive Accounting. Potential permitted practice for mutuals to treat as prospective reinsurance.
Opportunities in the P&C Run-Off Sector
Accelerating Levels of Insurance M&A
Eliminating non-core lines or subsidiaries in a sale can enhance value.
Premia Solution
Provide time of sale solutions for buyers and sellers with respect to non-core lines of business or subsidiaries. Generally prospective accounting treatment.
Opportunities in the P&C Run-Off Sector
Increasing Capital Requirements
Solvency II, a recently implemented EU insurance regulation, significantly increased the capital requirements for legacy reserves. Furthermore, the Ogden announcement in the UK is forcing insurance companies to hold more reserves against UK bodily injury claims.
Premia Solution
Provide tailored, long-term solutions to reduce the capital held against non-core lines of business.
Opportunities in the P&C Run-Off Sector
Captive and Orphan Subsidiaries
Industrial group may want to sell subsidiary holding the legacy exposure.
Premia Solution
Acquire the subsidiary and run it off. Allows seller to deconsolidate and avoid volatility and distraction of dealing with the exposure.
Opportunities in the P&C Run-Off Sector
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
Provide time of sale insurance policy covering the unwanted exposure.