Aggregate stop loss cover: The best of both worlds

Swiss Re Corporate Solutions was approached by an energy company, which insures its property risks through a captive. This company wanted to offload its major risks while retaining those risks it could cover without having to increase its captive’s capital reserves.

We were able to offer a solution whereby the captive insurer could retain its solvency rating without having to tie up excess capital. Having initially worked with the client to determine which risks it was prepared to retain, we developed an aggregate stop loss policy with excess coverage.

Under this policy, the client is only liable for risks up to a specific limit. Above this threshold we assume the liability. As a result, the client is able to retain the underwriting profits of its captive without having to commit extra capital for those risks it doesn’t want on its books.

Swiss Re Corporate Solutions is the ideal partner for this type of arrangement as we have extensive structuring know-how and financial capacity to cover high-impact risks of up to USD 100 million or more. We can also provide such covers for a single-line of business or as a one-stop multi-line package.

Moreover, we have the underwriting expertise to customise our cover and optimise the client’s risk situation. For example, captive insurers are usually at their most vulnerable during their early years in operation. We understand that and we can structure our offer accordingly.

Efficient use of capital, retention of underwriting profits, comprehensive risk protection: we can offer you all those things in the form of a transparent and customised product. Contact us if you would like to know more.