We offer solutions for companies that retain risk.
GJS Re has been providing solutions to companies that retain risk for over 85 years. We are a specialist reinsurance brokerage helping both new and established companies manage the risks retained in a captive, risk retention group, self-insured retentions or a large deductible program. GJS Re has created solutions in virtually all line of business, industry sector, hazard class, size and structure.
GJS Re maintains an independent position in working with a variety of carefully selected and closely managed business partners, in concert with our expert internal resources, to support the goals and objectives of each individual client.
GJS Re helps companies effectively manage their financial assets, whether that involves using some form of reinsurance as part of the company’s capital structure or risk transfer to free “trapped” capital from the company’s balance sheet.
Reinsurance
For any company that retains risk, protecting capital by utilizing reinsurance is an important tool to manage the aggregation of individual losses or the impact of a single large loss. GJS Re only partners with (re)insurance companies that carry the highest financial strength ratings. Together, we tailor the right solution, whether the answer is a quota-share, stop-loss, excess of loss, risk-attaching, loss-occurring, fronted arrangements, or some other structure.
Risk Transfer
There are many reasons why a company that retains risk might experience “trapped” capital (either share capital or collateral or both), including:
- A change in fronting carrier.
- One or more captives have become redundant through M&A activity.
- Changes in market conditions.
- Discontinued products.
- High claims volatility or long-term exposures.
- A change in strategic purpose.
GJS Re enables companies to free “trapped” capital and achieve a number of important benefits, depending on the desired outcome, including:
- Economic and legal finality.
- Reduction of expenses, improved outcomes and released capital.
- Transfer liabilities to control reserve-related P&L volatility and minimize exposure to future adverse development.
- Clear out “deadwood” of older years, discontinued classes, and disposed or non-strategic operations.
- Redeployment of “trapped” capital.
Risk transfer releases capital (and future capital commitments) that can be used to support new underwriting activities. Importantly, the cost of capital released through a transfer is far lower than the cost to raise capital in the debt or equity markets.
Only after GJS Re understands a company’s goals, can we help create the solution that best meets those objectives and creates the best possible outcome. Although GJS Re frequently utilizes a number of transfer structures, our solutions are not limited to the most common solutions, which include:
Novation – the complete transfer of all liabilities to a different insurance company.
Deductible-Buy-Back – the complete transfer of the company’s self-insurance liability to a different insurance company.
Loss Portfolio Transfer (LPT) – the transfer of liabilities to a different insurance company up to a stated policy limit.
Adverse Development Cover (ADC) – provides protection against deterioration of current reserves.
Reinsurance-To-Close (RITC) – allows a company to transfer older underwriting years and periodically transfer additional underwriting years as they reach a certain level of maturity.
Whatever the situation, GJS Re has the expertise and resources to help free trapped capital from retained risk structures. Once provided basic documentation by the client company, GJS Re can usually secure an indication in 2–4 weeks and typically close the transaction within 3-4 months.
