Howden Tiger and Swiss Re complete Loss Portfolio Transfer for KBIC
New York – 14 November 2023 – Howden Tiger, the reinsurance broking arm of Howden, the global insurance group, and Swiss Re Group, a leading global reinsurer, today announces the closure of a strategic Loss Portfolio Transfer (LPT) between Kookmin Best Insurance Company, LTD (US Branch) ("KBIC") and Swiss Reinsurance America Corporation, a reinsurance carrier within the Swiss Re Group ("Swiss Re"). Howden Tiger acted as advisor on this transaction.
In this transaction, KBIC transferred approximately $100 million in net loss reserves and unearned premium reserves relating to US commercial multi-peril and workers' compensation business. Swiss Re provided a ground-up limit of $155 million and assumed claims handling responsibility.
This deal was structured to allow KBIC to accelerate the strategic wind-down of their US branch while maintaining protection and claims support for policyholders. The transaction covered the company’s existing loss reserves as well as their unexpired policies. Swiss Re also covered KBIC’s remaining catastrophe risk in a parallel transaction.
Seth Ruff, Head of Legacy & Structured Solutions, Howden Tiger, commented: “This deal illustrates the power of combining Swiss Re’s structuring and underwriting capabilities with Howden Tiger’s legacy and capital markets expertise. Together we helped KBIC advance their strategy and unlock capital with a broad solution covering loss reserves, unearned premiums, cat exposure, and claims administration.”
John Levy, Head of US Structured Solutions, Swiss Re, added: "Through creativity and collaboration we designed and closed a unique structure that enables KBIC to advance their corporate strategy."
Marty Rosemann, Head Transaction and Legacy Management, Swiss Re, added: "KBIC needed a trusted partner that would manage KBIC's claims while understanding the importance of protecting KBIC's reputation."