Development and Execution of Exit Strategies

To shareholders of Insurance and Reinsurance companies that are in run-off or possess portfolios that are discontinued, the longer the business is being managed, the more expensive the procedure becomes. This is true in terms of both administrative costs and deteriorating technical results. It is therefore in their interests to dissolve the portfolio as quickly, yet as professionally, as possible.

We help companies and their shareholders to realize this goal and are uniquely qualified and capable in establishing the necessary methods and solutions.

Our aim is to enable our client to discharge its liabilities and secure its reinsurance recoveries in a professional and expeditious way. This process accelerates the winding down of the account and hence curtails underwriting deterioration and administration costs.

• Performing a series of technical, accounting and system analyses of the book to understand the full nature and problematic areas of the portfolio.
• A comprehensive study of this type lays the groundwork for dealing with “black holes” and enables system difficulties to be addressed.
• Developing a plan of action that enables management to identify targets and thereafter pro-actively achieve results, monitoring progress throughout the process. Calculating a financial model of the run-off cash flow.
• Implementing the plan of action by utilizing the multidisciplinary skills of Chiltington's staff and its range of consulting services to supplement the resources of the client.

Throughout this entire process of actively tackling the problematic areas and “weak spots,” we are in constant dialogue with our client to ensure that:

• They are fully and continually aware of our strategy and the costs involved at each stage.
• They can gauge the overall cost benefit of the steps taken and the results achieved.
• They remain in control of the account through the “transparency” that we provide by means of this overall analysis, planning, and consulting framework.

As the implementation of the plan matures, we can advise on the options to complete the run-off.  In the case of a solvent company in the UK, this could be achieved in several ways, depending upon the specific circumstances.