Acting as the advisor for the transaction, Howden Tiger played a pivotal role in facilitating the deal. KBIC, in this strategic move, has transferred approximately $100 million in net loss reserves and unearned premium reserves associated with its US commercial multi-peril and workers’ compensation business.

Swiss Re, operating through its subsidiary Swiss Reinsurance America Corporation, has assumed claims handling responsibility and provided a ground-up limit of $155 million in this structured agreement.

This carefully crafted transaction enables KBIC to efficiently wind down its US branch strategically, while simultaneously ensuring ongoing protection and claims support for its policyholders. The comprehensive nature of the deal covers KBIC’s existing loss reserves and unexpired policies. In an additional parallel transaction, Swiss Re has also taken on responsibility for KBIC’s remaining catastrophe risk.

This successful collaboration between Howden Tiger and Swiss Re exemplifies a strategic and comprehensive approach to risk management, providing KBIC with the means to navigate the wind-down of its US operations while safeguarding the interests of its policyholders.

Seth Ruff, Head of Legacy & Structured Solutions at Howden Tiger, highlighted the collaborative effort: “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 at Swiss Re, emphasised the creative collaboration: “Through creativity and collaboration we designed and closed a unique structure that enables KBIC to advance their corporate strategy.”

Marty Rosemann, Head of Transaction and Legacy Management at Swiss Re, underlined the importance of trust in the partnership: “KBIC needed a trusted partner that would manage KBIC’s claims while understanding the importance of protecting KBIC’s reputation.”

Author: Joanna England