Loss portfolio transfers (LPTs) are structured transactions that package and transfer a portfolio of known and unknown losses to a commercial insurance company in exchange for a fixed amount of consideration or premium. With an LPT, the company is relieved of its balance sheet liability (as well as any required related collateral) and, as a result, can clean up its balance sheet and achieve certainty of expense for what previously was uncertain and potentially volatile expense recognition.
Loss Portfolio Transfer Case Study
Achieve certainty in an uncertain world.