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Reinsurance Recoveries
Case Studies


London Lloyd's Broker Run-Off

Before Helix appointment:
A US client placed a vehicle extended warranty programme through a London broking intermediary over several years of account. Following the decision of the broker to enter into run-off in June 1999 they continued to address claims issues until February 2001. Underwriters then sought an appropriate facility to manage these accounts to the extinction of liabilities.

Helix were appointed to run-off this account in mid 2001 and continue to handle it to this day. Original claim volumes exceeded 200 per bordereau with substantial individual loss files in addition. This volume has reduced by approximately 10% per year but remains considerable today with significant collections still passing through the binding authority.

Helix solution:

  • to immediately obtain all necessary policies and outstanding claims correspondence from the broker.
  • install their claims management software onto the Helix system and review all outstanding collections.
  • make direct contact with the client to obtain all necessary information needed for ongoing servicing of these accounts.
  • to approach (re)insurers and make available all required and information outstanding answers to pending questions.
  • to process all monthly bordereaux within 5 days of receipt and to act immediately on any individual claim advised.
  • to ensure all collections were complete within 30 days of receipt.
  • to ensure all queries were responded to within 48 hours.

Helix result:
Helix was appointed in April 2001 and immediately instigated collections on all outstanding bordereaux. Every monthly bordereau to date has been collected from underwriters and paid in agreed timescales.

Since our appointment we have collected in excess of US $12,000,000 with the average collection period (time from receipt of bordereau/claim to settlement) being 26 days.



Client: UK Composite Insurer

Before Helix appointment:
The client involved established it had significant debts with a Bulgarian reinsurer the majority of which was time-barred and had been sitting on their books for in some cases over ten years. Despite the fact that a bad debt provision had been established within the insurers books, they were keen to remove the transactions and achieve a commercial settlement.

Helix solution:
Helix accepted an assignment on a “no-win no-fee” basis. The intention of the project was to utilise close contacts at the reinsurer to agree a global commutation at commercial terms.

Helix result:
Following an exercise to establish the precise nature of the debt Helix began negotiations in an effort to commute the relationship between the insurer and client. Within a three and half month period, Helix had successfully commuted the global relationship between the reinsurer and client and returned to the client in excess of the paid balances held within their ledgers. The funds received exceeded the expectations of the client.

 

Client: UK Aviation Insurer

Before Helix appointment:
The client being a large UK composite had sizable legacy reinsurances placed with a well known Romanian based company. Debts had been outstanding for over seven years and any efforts to collect a value of around $300,000 had failed. Although the client had created a bad debt provision it needed a solution to resolve this long-standing problem.

Helix solution:
Helix purchased the reinsurance receivable from the client in order to then immediately commence arbitration proceedings with the reinsurer involved.

Helix result:
Helix completed a due diligence and offered ‘’cash now’’ for the reinsurance receivables. The offer was accepted and the client accepted immediate settlement and cleared all records of the debt from their books. Following the purchase process, Helix commenced arbitration and negotiated a commercial settlement with the reinsurer involved.