News


FEBRUARY 2018: STARTING A CAPTIVE CELL-CASE STUDY

Svensk & Company's long standing client is a large European capital goods manufacturer that provides financing for its South American clients from a Uruguayan subsidiary.

Although the client had an excellent track record of collections on A/R’s in these emerging markets, most of its sales are medium-term credits and sometimes smaller limits (e.g. less than $1MM per transaction), the size and scope of which many insurers do not underwrite.

Svensk & Company with assistance from Quest Insurance Managers performed a feasibility study to assess if a captive insurance program was economically viable for the client and that such a program would meet the criteria for approval with the Bermuda Monetary Authority.

Svensk & Company identified a suitable A-rated insurance company to reinsure the Captive and was able to structure the policy in accordance with the client’s existing financing institution (major international bank) as the Loss Payee.

Svensk & Company bound a $30MM framework policy for the client with $1MM paid in M&D premium. Under the Treaty with the Reinsurer, LAM was able to write transactions up to a $4MM Discretionary Limit on behalf of the client with larger limits approved by the reinsurer on a case-by-case basis.

During the 2017 policy year, Svensk & Company underwrote 127 separate transactions, binding $17MM in liability utilizing 75% of the premium. This policy was successfully renewed in 2018 with a premium carry forward from the previous year.


AUGUST 2017: TRADE CREDIT UNDERWRITERS ("TCU") IS LAUNCHED

Svensk & Company announces the launch of its new captive credit insurance program,"TCU".

TCU is a Bermuda-based segregated account company that will allow exporters and trade finance companies/banks to access S&P A-rated reinsurance.

It is fully funded by Svensk & Company, the principals of which will provide underwriting services to its member-clients.

Policies will be issued by R&Q Quest Insurance Limited, a Bermuda-based captive administrator.

Please see our captives page TCU for further information.


MARCH 2016: EXPORTERS CREDIT CORPORATION IS LAUNCHED

EXPORTERS CREDIT CORPORATION announced today the launch of its new trade finance facility. ECC will provide the world's exporters and importers with a new, alternative source of medium and long term trade finance.

ECC is a Connecticut corporation that acts as a management advisor to EMP Belstar. It is owned and managed by an experienced team of trade finance and credit insurance professionals including Robert Svensk (CEO), Suresh Advani (UK Rep), Ron Davidow (Chief Risk Officer); Paul Mooney (Chief Operating Officer) and Vic Pocius.(EVP). Gerald Houghton, Dan Yun are Directors.

EMP Belstar is a global investment management firm, run by Daniel Yun and specializing in structured credit and private debt investments. The firm operates offices in New York City, Washington D.C., Seoul and Jakarta. Visit www.empbelstar.com.


JANUARY 2016: LAU IS PURCHASED BY AWAC

Allied World Assurance Company Holdings, AG announced today the commencement of its in-house trade credit and political risk insurance platform with the completion of its previously-announced acquisition of its former program administrator, Latin American Underwriters Holdings Ltd. ("LAU").

Click here for AWAC press release.