Regulatory Capital Relief for Banks
Significant Risk Transfer (SRT) is a portfolio-level financial deleveraging strategy that offers banks regulatory capital relief, providing a competitive advantage for insured banks to grow their business. Regulatory capital requirements, which vary by country, allow banks to sell a designated percentage of portfolio assets in compliance with extensive rule-based requirements for transactions that are tranched and securitized.
Through our strategic partnership with the Nexus Group, Nexus C&F offers SRT insurance policies for U.K. and Continental European clients that are typically underwritten on Nexus Group’s European platforms. To learn more, contact David Wright at DWright@cfinsint.com.
Latest News
Significant Risk Transfer Solutions Can Reduce Non-Payment Exposure for European Banks
Insurance-based SRT products can provide banks with regulatory capital relief on loan portfolios, creating opportunities to drive growth in the highly stressed post-Covid environment. Read the article
Contact
Daniel Sussman
President
Credit Division
Daniel.Sussman@cfins.com
David Wright
Head of International Credit & Political Risk, Nexus C&F
Nexus C&F
DWright@cfinsint.com
Services & Solutions
Credit Single Situation
Trade Credit Multibuyer
Mortgage Risk
Alternative Risk Solutions
Political Risk
Managing Claims
SRT Insurance Solutions
Portfolio-based SRT transactions typically involve corporate loan assets but other asset types can be included, such as infrastructure, project finance and mortgage-backed loans. The insurer’s and asset manager’s involvement is via non-payment default insurance policies and funded note participations, respectively.
SRT offers non-renewable insurance coverage providing credit protection, typically for a period of 3 to 5 years, and can be refreshed in alignment with portfolio allocation of risk. SRT insurance eases the bank’s non-payment exposure on a range of assets and reduces capital allocation requirements for more efficient, profitable portfolio management.
For details, contact David Wright at DWright@cfinsint.com.
Nexus C&F Strategic Partnership
The Nexus Group has a strategic partnership and deep relationship with Crum & Forster. This enables us to provide coverage for credit/political risks through Nexus C&F, serving insureds domiciled principally in the U.K. or European economic region and an MGA affiliation for multibuyer trade credit in both the U.S. and global markets. Through our partnership, Nexus C&F offers insurance policies that are typically underwritten on the Nexus Group’s London-based European platforms.
Nexus C&F’s International Credit & Political Risk unit offers a full suite of insurance solutions via a binding authority writing on behalf of Hamilton Insurance DAC, whose business is reinsured 100% by U.S. Fire Insurance Company.
Nexus C&F benefits from the Nexus Group’s extensive global platform infrastructure, corporate oversight and multinational relationships.
About the Nexus Group
The Nexus Group is the largest independent international specialty Managing General Agent (MGA) in the London market.
In 2020, Nexus employed over 300 professionals in nine countries, underwriting over £320 million of gross written premium in more than 15 specialty classes of business.
At the Nexus Group, perceptive underwriting is key, driven by an experienced team with dedicated expertise in specialty business classes.
To learn more about the Nexus Group and Nexus C&F, contact David Wright at DWright@cfinsint.com.
Credit & Alternative Risk Solutions
C&F’s Credit Division offers an array of credit insurance and risk finance products for U.S. and international clients. Specialty solutions include Credit Single Situation, Trade Credit Multibuyer, Mortgage Risk, Significant Risk Transfer (SRT), Alternative Risk Solutions and Political Risk Insurance.
Claim Services
Crum & Forster Credit Division manages claims on a case-by-case basis, recognizing the distinct characteristics of the underlying risk and the tailor-made policy wording.