With a long history in the design, development and global placement of reinsurance programs for captives and mutual insurance companies, our team develops comprehensive risk management solutions for large, individual-risk clients. Because businesses are dynamic, our reinsurance team frequently reassesses each client's changing business needs to provide you with the most efficient advice and services today and in the future. Artex is dedicated to creating reinsurance programs that empower our customers to deliver their desired business outcomes.

Advantages of reinsurance.

Reinsurance can offer a variety of advantages to captives and mutual insurance companies, including:

  • Access to reinsurance capacity to leverage the capital investment
  • A mechanism for smoothing volatility, managing severity spikes and protecting capital and surplus
  • Greater capacity options with less reliance on any one carrier
  • Syndicated reinsurance panels to provide a variety of perspectives and feedback on risk to help improve underwriting results and drive optimal outcomes over time
  • Property reinsurance solutions to provide ceding commissions to a reinsured single-parent captive to mitigate ongoing operating expenses

Artex offers access to global reinsurance capacity solutions, including layered or quota share facultative (D&F) placements.

Who needs reinsurance?

Reinsurance can offer an attractive option for a variety of candidates, ranging from insurance companies and SME through to Fortune 1000 entities in a number of industries.

Single-parent captives. Property or casualty risks with a favorable loss history and a willingness to retain risk. In particular:

  • P&C captives focused on U.S. or multinational industrial risks
  • Captives seeking to manage their deductible exposures via buy-down protection
  • Large transportation risks

Small- to medium-sized insurance companies, such as mutual companies and managing general agencies (MGAs), seeking an issuing carrier to address a reinsurance need

Types of reinsurance structures offered.

  • Layered or quota share facultative (D&F) reinsurance, accessed globally, for single-parent captives and risk retention groups (RRGs)
  • Treaty reinsurance for mutual insurance companies seeking a more innovative solution than is offered under a traditional treaty reinsurance structure
  • Loss portfolio transfer solutions to laser out specific risks from the captive
  • Issuing carrier and fronting partnerships

Typical reinsurance structures.

In terms of a general construct of a reinsurance single-parent captive, this diagram outlines the general components. As the construct indicates, a property single-parent captive is owned by an entity and may or may not use a fronting carrier. In turn, the risks originated by the fronting carrier are reinsured by the captive and, in turn, are retroceded to global reinsurance counterparties.

This diagram outlines the general components being Insured, Fronting Carrier, Captive (Spec, Agg, Retention) and Reinsurance.

A second structure shows placement for a Fortune 1000 company. Here the syndicated layered solution attaches above business unit self-insured retention ($1 million AOP with two special deductibles for hurricane and a European plant).

Fortune 1000 Global Chemistry Company Global Property Program Structure

Other services provided.

  • Global catastrophe (CAT) modeling tailored to specific coverage areas and ZIP codes
  • Legacy liability exit solutions
  • Embedded risk management and loss protection resources such as fire protection and engineering risk studies, as well as outsourced risk management capabilities for complex risks
  • Claim administration, reinsurance wordings and related strategies for captives

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