Network with Captive Review on LinkedIn

Follow Captive Review on Twitter

RSS

18th of May 2012

News

Bermudan captive liquidated

Vicky Beckett 22/11/2011

A Bermudan captive reinsurer parented by YMCA was liquidated on November 9.
 
The captive, Y-Mutual, was liquidated on the solvent basis it had satisfied all of its reinsurance obligations in just four and half years after stopping active underwriting.
 
The run-off plan was designed by Andrew Rothseid, principle of Re.Solve, who was responsible for executing and completing the run-off.
 
Mr. Rothseid said: "This is the best result possible for all involved. Y-Mutual has satisfied all of its obligations to the front carriers it reinsured so that the individual YMCA's and their claimants will continue to be protected."
 
At its largest, over 450 different YMCA organisations were members of Y-Mutual.
 
From being established in 1986 to 2007, Y-Mutual reinsured five fronting companies that insured the individual YMCAs.
 
The individual member YMCAs, the fronting insurers and Y-Mutual, covered numerous auto and property liability, general liability and workers’ compensation claims.
 
Y-Mutual discontinued active underwriting and went into run-off in February 2007, at which time there were over 1000 pending claims subject to its reinsurance protection.
 
Y-Mutual was a non-assessable mutual. It could not ask its members for further capital contributions and had to manage the run-off with limited financial resources.
 
Its challenge in run-off was to maintain solvency as it honoured its reinsurance obligations to the front carriers for the many potentially dangerous general liability claims.
 
When run-off began, it was anticipated that, if an orderly company wind-down was possible on a solvent basis, it would take at least nine years to complete all of Y-Mutual's reinsurance obligations.
However, Y-Mutual completed this in less than half the anticipated time.
 
After concluding all reinsurance obligations to each fronting company, Y-Mutual was deregistered as a Bermudian reinsurer and closed through a solvent members' liquidation process.

Tags: Auto, Bermuda, Captive, Fronting, Insurance, Liability, Liquidation, Reisnurance, Run-off, YMCA

Post a comment

Post a comment

Matee 09/12/2011 11:49pm

I can arlaedy tell that's gonna be super helpful.

» Report this comment

Data Centre

Captive Insurance Database (CID)is the world's most comprehensive online source of captive market intelligence.

CID gives users instant access to the names of parent companies who currently own a captive. It also provides the names and contact details of captives’ risk managers, as well as the parent or ultimate parent companies’ address, country, CFO, CEO, and exchange.

CID also gives you the captive name, manager, licence and incorporation date and the type of captive the parent company is running.

CID will help you to:

•    Win more business proactively – Search from 5,700 captives and over 3,700 captive owners who you can offer your services to.


•    Increase profit and efficiency – Target specific captive owners and sponsors quicker, saving you time.


•    Build relationships – Access detailed contact information for each decision-maker. 

An annual CID licence costs just £1,195 + VAT.

Already a CID user?Login here.

Order a 2 year subscription and SAVE 25%
The licence includes full online access to CID and a free annual hardcopy of CID (worth £610).To find out more contact Nick Byrne on +44 (0) 20 7029 4027 or cid@captivereview.com.

more//

Company and Ratings Search

Search A.M. Best's extensive database of life/health, property/casualty and insurance companies worldwide.

more//

Cell Company Guide

WELCOME TO THE Captive Review Cell Company Handbook 2009 – the second edition of our global directory of cell company jurisdictions. Since we last published this directory, the general attitude toward cell companies seems to have shifted up a gear. Whereas single-parent companies have long ruled the captive roost, a slight uptick in the formation of pure captives at the beginning of this year can’t hide the fact that growth in this market is still sluggish.

more//

Pellentesque feugiat arcu vitae lacus elementum in ullamcorper diam pulvinar. In odio massa, facilisis sed dignissim vel, vehicula ac diam. Curabitur tempor, quam nec aliquam tempus, dui lorem venenatis arcu

Mauris accumsan orci ut turpis placerat condimentum. Ut sit amet lobortis purus. Class aptent taciti sociosqu ad litora torquent per conubia nostra, per inceptos himenaeos.

CID

Essential Reading for risk managers

Subscribe today

Request a free issue

Subscribe now and save £500

  • 5% off all event bookings
  • 5% off CID data access
CID