Swiss Re and Howden Tiger complete loss portfolio transfer for KBIC
Howden Tiger, the reinsurance broking arm of Howden, and global reinsurance giant Swiss Re Group have completed a strategic loss portfolio transfer (LPT) for Kookmin Best Insurance Company (US Branch) (KBIC).
The transaction saw KBIC transfer approximately $100 million in net loss reserves and unearned premium reserves relating to US commercial multi-peril and workers' compensation business.
Swiss Re, through its subsidiary Swiss Reinsurance America Corporation, provided a ground-up limit of $155 million and assumed claims handling responsibility.
The deal was structured to allow KBIC to accelerate the strategic wind-down of its US branch while maintaining protection and claims support for policyholders. The transaction covered the company’s existing loss reserves as well as their unexpired policies. Swiss Re also covered KBIC’s remaining catastrophe risk in a parallel transaction.
Seth Ruff, head of legacy & structured solutions, Howden Tiger, commented: “This deal illustrates the power of combining Swiss Re’s structuring and underwriting capabilities with Howden Tiger’s legacy and capital markets expertise. Together we helped KBIC advance their strategy and unlock capital with a broad solution covering loss reserves, unearned premiums, cat exposure, and claims administration.”
John Levy, head of US structured solutions, Swiss Re, added: "Through creativity and collaboration we designed and closed a unique structure that enables KBIC to advance their corporate strategy."
Marty Rosemann, head transaction and legacy management, Swiss Re, added: "KBIC needed a trusted partner that would manage KBIC's claims while understanding the importance of protecting KBIC's reputation."
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