Managing your own risks just got simpler.
In recent years increasing regulation has led to a level of complexity and cost that has made it difficult for insurance buyers who want to participate in their own insurance programs. Buyers are looking for alternative risk solutions that will achieve their aims but not expend resources unnecessarily.
ACE has the answer
To assist our clients the ACE Group has formed two new rent-a-captive insurance companies:
- Paget Reinsurance Ltd. (Paget Re) - a Bermuda registered Class 3 segregated account company
- Pembroke Reinsurance Inc. (Pembroke Re) - a Delaware registered protected cell company
Both Paget Re and Pembroke Re are wholly owned by ACE - Paget Re by ACE Bermuda Insurance Ltd. and Pembroke Re by ACEINA. They provide the benefits of an owned captive insurance company but without the administrative, capital and governance obligations.
Our clients can be confident in the security of their program. ACE has adopted legislation in both domiciles that recognizes that the assets and liabilities of each client in Paget Re or Pembroke Re are legally segregated from one another.
The advantages of managing your own risks
Managing your own risks through Paget Re or Pembroke Re will enable you to gain greater control over your insurance programs. You should be able to :
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Reduce your overall risk costs
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Insure your uninsured risks
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Participate in underwriting profits.
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Access reinsurance markets
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What could be simpler?
To simplify the process we have structured both Paget Re and Pembroke Re so that :
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Capital is not required
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No new subsidiary or legal entity required
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No start up costs (legal, advisory, incorporation)
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Annual costs generally are lower for rent-a-captives
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No shareholding required
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No legal entity to run-off in the event strategies or risk appetite changes
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Minimal governance burdens
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Compliance requirements are handled by rent-a-captive management
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No statutory financial filings required for each participant
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Asset and investment management provided
The ACE Advantage - selecting the right partner
Selecting one of these ACE owned facilities provides participants with a number of additional advantages, including:
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ACE's ability to effectively manage global insurance programs
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ACE is a licensed insurer in over 50 countries
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Access to ACE's claims management services
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ACE Group standards of quality and experience
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ACE is one of the strongest and most stable insurance organizations in the world
How does it work?
The relationship between Paget Re or Pembroke Re and our client is governed by one agreement. This agreement sets out the services that will be provided and describes how all the significant issues will be handled including funding, distribution of profits and investments.
Although Paget Re and Pembroke Re may be able to issue direct insurance contracts in certain circumstances, typically, the participant or his agent or broker negotiates with a primary insurance company, say ACE, for insurance coverage. ACE issues a policy to the participant for a premium then cedes a portion of or the entire risk to Paget or Pembroke.
Paget Re or Pembroke Re issues a reinsurance agreement to ACE, receives premium, reimburses losses, earns investment income, prepares financial statements and charges an administrative fee - all of which are attributable to the account of the participant. Underwriting profit and investment income accumulating in the participant account is returned to the participant as a distribution or retained within the participant account to underwrite future year's risks.
The risk gap, defined as the difference between net ceded premium and the maximum aggregate loss, in any given underwriting year must be fully secured by cash or letters of credit.
Is Paget Re or Pembroke Re right for you?
Paget Re and Pembroke Re are licensed to write all lines of insurance. Our clients participating in these programs tend to have certain factors in common, such as:
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Programs with good loss experience
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Programs with predicable losses
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Financially secure owners
Are you a candidate?
For more information:
Paget Reinsurance Ltd. & Pembroke Reinsurance Inc.
17 Woodbourne Avenue
Hamilton HM08
Bermuda
Phone: 441-299-9353
Email: info@acebermuda.com
www.acerentacaptive.com
Ask your local resource in the ACE Group to contact us or call your broker to find out more. If you are a US-based company, broker or agent please note that ACE Bermuda’s insurance products are only available through non US-based brokers.