Loss Portfolio Transfer and Insurance Business Transfer with Allianz SEfrom INSURANCE LEGACY Newsletter of October 2. 2020

Randall & Quilter Investment Holdings Ltd (Bermuda) announced that, with the close assistance of Black Forest Reinsurance Consulting (BFRC), it has transacted a Loss Portfolio Transfer with Allianz SE, Germany.

The reinsurance is being provided by R&Q’s A.M. Best A- (Excellent) rated carrier in Malta, Accredited Insurance (Europe) Ltd (Accredited). With this transaction Allianz reaches economic finality of a third-party reinsurance portfolio that has no active client relationships and that was underwritten from 1976 onwards.

Further Infos

Further, this transaction also encompasses the mutual interest to undertake an Insurance
Business Transfer of the portfolio to Accredited, subject to regulatory approvals.
Paul Corver, Group Head of M&A at R&Q, explained: “We are delighted to have com-
pleted this Loss Portfolio Transfer with the mutual intention to follow on with an Insurance
Business Transfer from Germany to Malta.

 

BFRC's Role

“We have assumed numerous portfolios of business from across Europe into our rated Maltese platform which provides complete finality to the cedant and the accompanying
capital relief. We are very pleased to have executed this transaction with
Allianz and once again it proves our capabilities to utilize our international team to provide
full finality legacy solutions across the US and Europe.
“Our legacy pipeline across the Group remains strong and we look forward to wor-
king closely with BFRC to conclude further Continental European legacy opportunities
in the near future.”

About BFRC

BFRC — Black Forest Reinsurance Consulting GmbH
Black Forest Reinsurance Consulting Ltd is a German (re)insurance consulting and service
start-up from February 2020. They are experts for non-life Legacy (re)insurance and digi-
talization solutions.
Their core business is to consult on digitization measures as well as selling legacy
reinsurance solutions for reinsurers, insurers, and captives.
For the non-life Legacy market, BFRC has developed a 6-stage DPOR (Digitalization
Process Optimization Routine) process, which helps to develop transformational strategies
and to determine and monitor digitization measures.
In addition, they have developed the “Business Booster” together with their coope-
ration partner, novofactum. This aims to optimize legacy processes and portfolio analyses
of (re)insurers and captives and to digitize business processes.
Jens Ziser of BFRC said that they also offer Legacy Exit solutions through our co-
operation partner, Randall & Quilter Investment Holdings Ltd (Bermuda). Solutions include
Loss Portfolio Transfers (LPT), Adverse Development Covers (ADC), Novations, Insurance
Business Transfers (IBT) and full acquisitions of risk carriers.
BFRC are not alone in seeing increased demand for exit solutions for the purpose of
releasing capital and operational cost optimization in this area, particularly as a result of
the volatility in the financial markets caused by COVID-19.

Note: The original Article can be downloaded here.

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„I have worked with BFRC – Black Forest ReInsurance Consulting and R&Q and their A- rated EU platform, Accredited Insurance (Europe) Limited over the last 12 months successfully on a Loss Portfolio Transfer and a Reinsurance Business Transfer.

Here I found both to be competent and customer centric in their way of finding tailor-made Legacy solutions for Allianz Re’s third party reinsurance business.

I would have no hesitation in recommending BFRC and R&Q to anyone requiring effective Legacy solutions.“

Holger Tewes-Kampelmann
CEO, Allianz Re