A Business and Regulatory Update on

Insurance Exit Strategies

Solutions for Discontinued Operations

Thursday, May 29, 2003

About

As the economy falters and reserves grow, the business case for exiting one or more lines of business can become more compelling. Those companies who pay close attention to their business, know their exit options, and are positioned to exploit them at the right time, will reap the greatest benefits.

Exit is not just for companies or lines of business in trouble. Exit strategies can be used to accomplish a variety of objectives, including:

  • When the parent company is seeking to release some of its embedded balance sheet value in its subsidiary
  • When a subsidiary company has classes of business no longer deemed viable or strategic to the parent company
  • As an alternative to traditional run-off which is not generally the most economically efficient means of exiting a business
  • If the insurance entity is looking to cleanse its balance sheet prior to M&A activity
The right strategy and the right timing are, however, critical to the desired outcome.

This American Conference Institute conference examinedhow exit solutions may be structured and utilized for all entities looking to exit from a particular line of business or from the market as a whole, whatever the circumstances. This event brought together an international faculty of recognized experts in this field from Castlewood Holdings, Cobalt Runoff Services, Global Resource Managers CNA, Grant Thornton, Horizon Management Group, PricewaterhouseCoopers, The Princeton Partnership, Risk Enterprise Management, Riverstone Resources, Swiss Re, Tawa Associates, Tillinghast-Towers Perrin and Transit Casualty Company in Receivership. They shared their first hand practical experiences in developing and implementing exit strategies. They showed the benefits of early action, whether it is to enhance shareholder value, limit damage to your reputation, or to adjust quickly to a strategic shift affecting the business as a whole. Get insights on:

  • Day to day strategies of operating and managing run-offs
  • Commutations as an exit strategy
  • The regulatory framework for exit and how to work within it
  • Run-off: What are the key considerations for internal vs. external ?
  • How to adjust your balance sheet to reflect economic reality
In today's volatile insurance market, it must be part of any insurance executive's strategic brief to scrutinize the latest developments in exit strategies. By attending this conference, you will be able to learn from leading practitioners, as well as industry leaders. Take away your exit strategies "toolbox" and gain a competitive edge.

Contents & Contributors

About

As the economy falters and reserves grow, the business case for exiting one or more lines of business can become more compelling. Those companies who pay close attention to their business, know their exit options, and are positioned to exploit them at the right time, will reap the greatest benefits.

Exit is not just for companies or lines of business in trouble. Exit strategies can be used to accomplish a variety of objectives, including:

  • When the parent company is seeking to release some of its embedded balance sheet value in its subsidiary
  • When a subsidiary company has classes of business no longer deemed viable or strategic to the parent company
  • As an alternative to traditional run-off which is not generally the most economically efficient means of exiting a business
  • If the insurance entity is looking to cleanse its balance sheet prior to M&A activity
The right strategy and the right timing are, however, critical to the desired outcome.

This American Conference Institute conference examinedhow exit solutions may be structured and utilized for all entities looking to exit from a particular line of business or from the market as a whole, whatever the circumstances. This event brought together an international faculty of recognized experts in this field from Castlewood Holdings, Cobalt Runoff Services, Global Resource Managers CNA, Grant Thornton, Horizon Management Group, PricewaterhouseCoopers, The Princeton Partnership, Risk Enterprise Management, Riverstone Resources, Swiss Re, Tawa Associates, Tillinghast-Towers Perrin and Transit Casualty Company in Receivership. They shared their first hand practical experiences in developing and implementing exit strategies. They showed the benefits of early action, whether it is to enhance shareholder value, limit damage to your reputation, or to adjust quickly to a strategic shift affecting the business as a whole. Get insights on:

  • Day to day strategies of operating and managing run-offs
  • Commutations as an exit strategy
  • The regulatory framework for exit and how to work within it
  • Run-off: What are the key considerations for internal vs. external ?
  • How to adjust your balance sheet to reflect economic reality
In today's volatile insurance market, it must be part of any insurance executive's strategic brief to scrutinize the latest developments in exit strategies. By attending this conference, you will be able to learn from leading practitioners, as well as industry leaders. Take away your exit strategies "toolbox" and gain a competitive edge.

Contents & Contributors

EXITING THE INSURANCE BUSINESS: WHY, WHEN AND HOW?
Paul E. Dassenko, Cobalt RunOff Services, Limited

INSURANCE EXIT STRATEGIES: "WHY, WHEN AND HOW?
Bruce Shulan, The Princeton Partnership, LLC

INSURANCE EXIT STRATEGIES FITCH RATINGS' PERSPECTIVE
Mark E. Rouck, Fitch Ratings

REGULATORY REQUIREMENTS/IMPEDIMENTS TO EXIT
Kenneth R. Wylie, Sidley Austin Brown & Wood

EXITING INSURANCE BUSINESS INTERNAL OR EXTERNAL
Arthur Coleman, Global Resources Managers CNA

STRATEGIES FOR RUN-OFF
Frederic Gindraux, Swiss Re

OUTWARDS REINSURANCE
Jonathan Rosen, Risk Enterprise Management Ltd.

PRACTICAL AND TACTICAL STRATEGIES FOR RUN-OFF
George Casale, Rivkin Radler LLP

COMMUTATIONS: ADJUNCT, AID OR ALTERNATIVE
Thomas F. Crone, Peak Financial Advisors

COMMUTATIONS: AN ACTUARIAL PERSPECTIVE
David Powell, Tillinghast-Towers Perrin

COMMUTATION OF REINSURANCE AGREEMENTS:SOME CONSIDERATIONS
James Veach, Mound, Cotton, Wollan & Greengrass

EXITING THE INSURANCE INDUSTRY VIA A SALE
Bryan Joseph, Castlewood Holdings Ltd.

CLAIM ESTIMATION/ACCELERATION NO RETREAT NO SURRENDER
Debra J. Hall, Reinsurance Association of America

TORT TRIAL AND INSURANCE PRACTICE SECTION
Francine Semaya, Cozen O'Connor

THE RHODE ISLAND SOLVENT RUN-OFF PLAN
Frank N. Ray, Hinckley, Allen & Snyder LLP

SHOULD YOU CONSIDER SOLVENT SCHEMES OF ARRANGEMENT
Robin J. Mayor, Conyers Dill & Pearman

SOLVENT SCHEMES OF ARRANGEMENT
Juliette Stevens, DLA

SOLVENT SCHEME OF ARRANGEMENT INNOVATIONS
Daniel Schwarzmann, PriceWaterhouseCoopers, LLP

ACCOUNTING STANDARDS & EXIT
Andrew Bak, Financial Markets Group

TAX IMPLICATIONS OF EXITING A LINE OF COVERAGE OR BOOK OF BUSINESS
Thomas A. Gibbons, Deloitte & Touche LLP

ASBESTOS LIABILITIES: IS THERE AN END IN SIGHT?
R. Patrick White, Buckley King

THE ASBESTOS "ODYSSEY"
Frederic Gindraux, Swiss Re


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