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HitmanH


Total Posts: 423
Joined: Apr 2005
 
Posted: 2016-11-17 12:54
And associated management by hedgefund entities - anyone got any a) views; b) primers knocking about?

chiral3
Founding Member

Total Posts: 4985
Joined: Mar 2004
 
Posted: 2016-11-17 13:08
Could you be more specific? Type of business, domicile, type of reinsurance? There's been the AQR-like deals in CAT Re, the PE deals to capture fees, the sell side capital markets reinsurance, and a certain crowd sourcing of skill sets (like the latest 2sigma, AIG). These four examples are all different and provide different benefits for both sids. I've done these deals and there's no primers worth anything.

Nonius is Satoshi Nakamoto. 物の哀れ

Tradenator


Total Posts: 1579
Joined: Sep 2006
 
Posted: 2016-11-17 14:19
Captives in general are a means to self-insure the more frequent and smaller risks, and re-insure out the tail risk. Companies set up a captive company and fund it based on their expected payout profile for what the captive covers. All else equal, they save the 20% (or more) sales commission by self-insuring the body of the distribution. They then need to allocate assets to back the expected payouts.

The Guernsey Protected Cell Company is a fairly good structure for this, with each captive having its own segregated cell.

Is this the type of info you need? Are you looking at marketing to the captive world and just need some basics?
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