News


JULY 2019: NEW REINSURANCE FACILITY FOR TCU

Svensk & Company are pleased to announce a new insurance facility led off by S&P A+ Rated Arch Reinsurance Company.

TCU remains in its original form and function as a captive cell in Bermuda, organized under R&Q’s Segregated Account Company, providing credit underwriting services to its Members without the need for each Insured to establish its own cell or captive company. This structure facilitates access to the Bermuda market with less paperwork and less expense for its Members. All underwriting services are provided by the team at Svensk & Company.

We continue to focus on:

  • Underwriting smaller, one-off transactions
  • Emerging Market Exporters, Importers and Brokers
  • Medium-term transactions with private Obligors
  • Revolving trade credit facilities for Regional Banks
  • Programs for trade funds and institutional lenders

We are not interested in the following types of transactions:

  • PRI only Investment Insurances
  • Project Financings
  • Traditional Whole Turnover Programs
  • Larger and/or complex transactions with sovereign obligors

Submissions can be sent to any member of the underwriting team (see Contacts)


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.