Finite Risk Reinsurance

There are many reasons to explore finite risk solutions. For example, to stabilize financial earnings and appease equity analysts, rating agencies, or other stakeholders; to increase retention levels; to obtain additional reinsurance capacity; and to mitigate concerns about potential adverse loss reserve development.

Finite risk has matured into an attractive alternative to the retention of risk and the traditional one-year reinsurance product. Today, these contracts are legitimate reinsurance transactions that are accepted even in the most rigorous accounting and regulatory environments. No longer is finite risk reinsurance associated with the strategy of a "troubled company."

Guy Carpenter's Finite Risk team, combining the disciplines of accounting, actuarial science and corporate finance, are skilled in the evaluation, design, and negotiation of finite risk products. They can help you to optimally integrate customized finite risk solutions with traditional reinsurance to best meet your business needs. This team enjoys strong trading relationships with the significant finite risk reinsurers, including some direct writers, due to their acknowledgment of the added value that Guy Carpenter brings.

The perspective that our finite risk unit specialists can bring to you is unmatched in either the broker or direct reinsurance market. We help you to:

• Identify the areas where finite risk is appropriate.
• Compare the alternatives: retaining exposures net, finite risk, traditional reinsurance, or some combination.
• Evaluate and design nontraditional reinsurance alternatives, projecting each alternative's impact on your company's pro forma financial statements and risk-based capital position.

Guy Carpenter & Company, Inc., Two World Trade Center, New York, NY 10048. Tel: 212-323-1000; Fax: 212-313-4970.