Loss Portfolio Transfers Our Special Expertise

A Loss Portfolio Transfer (LPT), sometimes known as a reserve buyout, is a method of transferring outstanding loss liabilities. In exchange for a one-time payment, the current insurer or self-insurer is relieved of the financial and administrative responsibility for the losses transferred.

A Loss Portfolio Transfer can be used at any time a party needs to remove or reduce liability assumed under an insurance contract.  It is often used on mature segments of   workers compensation, general liability and professional liability lines of business. It can include single or multiple lines of business or contract periods.

BENEFITS OF AN LPT:

• Conversion of unknown future liabilities into a fixed payment.
• Return of collateral when out of proportion to probable future liabilities.
• Elimination of administrative costs and assessments.
• Improved balance sheet.
• Possible tax advantages.

WHO MIGHT NEED AN LPT?

• A self insurer or entity with large deductible programs.
• A captive insurer or reinsurer.
• A risk retention group or trade association.
• An insurer or reinsurer in run-off.
• A merger or acquisition partner for whom a transfer without prior liabilities is preferred.

THE SPECIAL EXPERTISE OF THE 2 WINGS TEAM:

Simply put, we know what it takes to close the deal. We are an experienced intermediary that understands the many moving parts of successful LPT execution.  We have the expertise in all the critical areas:

• We have excellent relationships with responsive markets who understand the issues associated with alternative risk transactions.
• Our data management team can assist in assembling data and analyzing loss information.
• Our claims team can assist in reviewing and advising on specific problem cases.
• Our actuaries and underwriters use the most sophisticated loss projection and pricing models.
• We understand and can help navigate complex legal and regulatory implications of the transaction.

We don't leave it up to you to do all the work, but act as your partner in making the transaction happen.