Reinsurance and Alternative Risk Transfer Mechanisms

S&C provides comprehensive advice with respect to risk transfer mechanisms, including traditional and non-traditional reinsurance, captives, insurance securitizations and insurance derivatives. We follow the regulatory, GAAP and SAP accounting and tax rules applicable to these transactions.

Recent notable insurance securitization transactions include representation of:

• Allianz and Blue Fin Ltd. in connection with securitization of European windstorm risk (2007, 2008)
• Allianz and Blue Wings Ltd. in connection with securitization of North American earthquake risk and U.K. river flood risk (2007)
• AXA and Osiris Capital in connection with securitization of life insurance mortality risk (2006)
• AXA and Aura Re in connection with multi-year securitization of European natural catastrophe risk (2005)
• Initial purchasers of Stingray Pass-Through Trust - Rule 144A offering of trust certificates providing a source of liquidity for a subsidiary of Scottish Re Group Limited (2005)
• Bear Stearns in connection with an offering of mortgage insurance-linked notes securitizing primary mortgage insurance written by Radian Group Inc. in respect of a pool of residential mortgage loans (2004)
• UBS in connection with life/annuity securitizations (2003-2004)
• Initial purchasers of notes issued by Mony Holdings LLC in connection with Mony’s securitization of its closed block (2002) 
• Prudential in connection with its securitization of its closed block (2001)
• SCOR in connection with the offerings by Atlas Re of reinsurance-linked notes providing multi-year multi-peril coverage, the largest such offering by a European sponsor and the first to use an Irish SPV issuer, and by Atlas Re II (2001)
• In connection with insurance securitization, S&C took the lead and sought and obtained rulings from insurance regulators throughout the United States concerning the status of such securities for insurance regulatory purposes.
• We frequently advise as to issues regarding captives, including the Vermont and South Carolina statutory requirements.