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On 8 September 2022, ECJ answers ...
(Re)Insurance Expertise.
Hestia’s team has been successfully originating, structuring, pricing and closing both insurance and reinsurance transactions for over 20 years.
On all the transactions we underwrite, we ensure there is a strong alignment of interest between all parties and an appropriate risk-reward profile. Our exceptional track record has been built on strong underwriting discipline.
Historically we have underwritten deals covering a wide range of transactions covering losses with prospective, retrospective or combined features.
Our target markets are a mixture of insurance and reinsurance, new capital markets (re-insurance vehicles and corporations in both established and emerging markets) and risks taken that are diversified and largely uncorrelated to the traditional (re)insurance market.
Risks we focus on will typically involve one or more of the following characteristics:
- Unusual or atypical risk
- Poor historical loss experience
- New opportunity or class of business
- Capitally constrained counterparty
- Pools of granular risks as opposed to large one-off bets
- Tax, legal, regulatory, or accounting motivation
Transactions we have structured have typically provided solutions for counterparties combining components of both capital markets and insurance – usually either complex problems or new ideas and products
A complex problem...
We structured a transaction to assume the liability on a pool of travelers’ cheques. The issuer needed to be released from various guarantees in order to move forward corporately – neither the capital markets nor the regular insurance market could provide a solution. We structured a transaction that moved the future liability of any encashments to the insurer, shielded the issuers from the long-term credit risk of the carrier and a mechanism to ensure chequeholders could get reimbursed on a timely basis.
A new product…
We worked with the UAE government and the local UAE insurance market to build a mandatory program for expatriate workers which gave the worker enhanced rights to outstanding wages and the cost of passage home should their employer be unable to meet their obligations. The program relied on distribution through the work permit issuance portal, strong alignment of interest with the UAE government, the participation of the local insurance market, and reinsurance support from international carriers.
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