Commutations

We identify, price and execute favorable commutations and policy buybacks. Commutations and policy buybacks allow the insurer to eliminate future earnings and balance volatility.

SunPoint utilizes a commutation pricing team, with actuarial, financial and insurance coverage experts to identify, plan and execute favorable commutations of contracts or policy buybacks.

The commutation team inspects company's records, evaluates critical areas such as contract compliance, premium and loss cessions, claims handling and settlement practices, and historical handling standards. A commutation strategy and range of values are developed following a detailed analysis of loss reserves and future expected development. This combined with objective audit findings results in favorable commutations.

SunPoint applies similar techniques for direct insurance to buyback policies and exposures such as asbestos and pollution, among other environmental exposures.

Commutation can help a company achieve finality by:

  • Eliminating future liabilities and claim volatility
  • Freeing up capital and management resources
  • Eliminating credit risks with companies that are considered insolvency risks
  • Improving underwriting results with commutation prices less than reserves

SunPoint

A Fosun Company.

SunPoint provides financial and operational solutions that allow our partners to address critical business threats.

Address

SunPoint Reinsurance Limited
Cumberland House
1 Victoria Street,
Hamilton, Bermuda HM12
Tel. +1.888.386.3124
info@sunpointholdings.com

Locations

New York

Chicago

San Diego

London

Bermuda

Bradenton, Florida

©2017 - SunPoint.