Gossmann to form carrier in Malta as ExPRO goes live

Gossmann & Cie, the company formed by former DARAG chief Arndt Gossmann to develop a new capital management tool for insurers, will form a carrier on Malta by the end of the year, which will utilise the domicile’s protected cell company (PCC) regime to assume liabilities for its first clients.

Gossmann & Cie, formed in 2018, has developed ExPRO (Expiring Policy Roll-Over), a product that allows non-life insurers to release the capital and operational resources tied up by expired policies by transferring them on an ongoing basis to a third-party insurer for a pre-agreed price.

This allows insurers to release capital and operational resources almost incidentally once a client’s policy expires. Gossmann & Cie will take on the expiring policies and the operational handling. Munich Re is the strategic reinsurance partner of all transactions and will assume a large proportion of the risks.

Gossmann said the formation of the new carrier would follow the announcement of further senior announcements, taking the company’s senior management team to five and its total staff to 15.

It has announced the appointment of Joanna Aquilina, previously CEO of the Maltese PCC of DARAG, as executive director of the new Malta carrier once it is formed; and Patrick Riecken, who previously worked for Gothaer Re and Delvag Re, as head of underwriting.

Gossmann explained that ExPRO has been piloted in selected insurance portfolios in recent months. On these, it has demonstrated a reduction in cost of capital in the range of 17 to 49 percent, while eliminating over 75 percent of terminated files.

“I am delighted with the progress of this project so far,” Gossmann said.

“We developed the idea based on feedback from clients and it is delivering what they want."

“We are not really a startup company, given our existing experience in this sector. I anticipate getting the carrier up and running by the end of the year and to start completing the first portfolio transfers in the first and second quarters of next year.”