Consulting Services for a Changing Marketplace.
Comp Capital Consulting provides a wide range of financial modeling and actuarial consulting services. While some of our competitors offer standardized services and solutions, we develop customized solutions specifically for your company’s unique situation and needs.
Actuarial Modeling Software
Our breadth of experience with financial modeling and actuarial software differentiates our services from other consulting firms.
We have extensive expertise in various unique software coding in order for a bespoke package to fit a particular clients needs. Our consultants and actuarial professionals specialize in each modeling platform and are expert in using their respective tools.
Our broad business planning and financial modeling expertise provides clients with a substantial benefit. For some companies this involves the incorporation of new reinsurance company either onshore and or offshore, particularly Bermuda. Consequently, our clients can use the models we prepare as a foundation to support additional financial and long term planning applications.
Our extensive experience in modeling, both on a Statutory and GAAP basis, for business plans for new incorporations make us unique in the market place having resources that can cover most aspects of the insurance and reinsurance industry. We have developed proprietary model conversion utilities to assist in the reworking of base numbers as provided to formatted GAAP and Statutory information that can be used in a electronic pro forma balance sheet. This allows us to deliver the highest quality model in less time and at a lower cost.
Asset/liability management and cash analysis continues to be a critical challenge for the Property and Casualty insurance industry. We have extensive asset/liability analytical knowledge and experience. We design projects to transfer our knowledge to our clients and provide them with state-of-the-art capabilities. We have access to some of the best cash management providers in Bermuda with the ability to maximize returns with the minimum exposure to financial risk.
Mergers and Acquisitions
We have assisted insurance companies with their merger and acquisition needs. Including financial analysis, claims auditing and review and opinion reports. Including in depth research opinion and financial projection work based on the companies core business. Opinion of divestment of non core operations and search facilities for potential buyers and capital providers. We can also provide earnings projections for IPO’s, fairness opinions, GAAP conversions and policyholder allocations.
Process Improvement consulting
In partnership with associated stateside affiliates, we combine actuarial and process improvement consulting to help companies evaluate their business problems. Our management consultants are experts in using state of the art process improvement techniques, Total Quality, Reengineering, Workout and other productivity improvement approaches.
Our team provides ways to improve processes in areas such as: product development, business retention, conversion to an offshore strategy in the event a US based company is moving some of its risk transferring capabilities to such “venues” as Bermuda and or Cayman .We also endeavor to provide distribution strategy & implementation and product & system implementation.
Modeling/Cash Flow Testing
We provide full asset adequacy support, from construction of models and projection of results to interpreting results and developing opinions and memorandums.
Mergers, Acquisitions and Rehabilitation
Our firm has a solid financial experience with mergers, acquisitions we have a talent pool that covers the insurance side of the business to key Directors in our firm who have worked for major investment banks. We have advised both buyers and sellers of companies and of blocks of business.
With the globalization of the world economy, companies are growing by mergers and acquisitions to stay competitive. The complexity of such transactions, which can be exponential in a global environment, makes it difficult to assess all risk exposures and liabilities. Comp Capital can help evaluate many of the aspects of a potential deal:
- Evaluation of the Companies core business
- Evaluation of the current health of the company
- Identifying potential problem area’s to a conclusion of a deal and working on a strategy to fix and or contain such areas
- Actuarial and claims evaluation to avoid conflicts at the due diligence level
- Dealing with existing shareholders agreements and stock options
- Employee benefits
- Pension programs
- Executive compensation
Comp Capital works with you at the inception of the deal, usually prior to the point where a Letter of Intent is executed. We enable you to be a better-informed party to the transaction, which results in a better enterprise valuation of the target company. We evaluate the targets’ operations from a risk management perspective to identify exposures or items that could impact the deal or even your strategy to buy or merge. Such exposures could include:
- Environmental liabilities
- Heritage or legacy issues
- Business integration and/or contingent business interruption
- Other catastrophe and or risk exposures that put the targets’ enterprise value in question
Comp Capitals Mergers and Acquisitions services are generally bundled around the following:
Pre-Acquisition Due Diligence
Identify hidden and potential liabilities, unresolved claims, and cash-flow implications, as well as major gaps in the target companys’ current reinsurance program.
Assist both with identifying the skills and resources needed to ensure a smooth integration.
Pre-Closing Risk Management
Implement post-closing reinsurance and balance sheet enhancements such as loss portfolio transfers etc even before the transaction date to take advantage of enhanced coverage and lower pricing as soon as possible.
Post-Closing/Outsourcing Risk Management
Full- or part-time risk consulting /management to help on an ongoing basis.
Assist as an impartial advisor to ongoing issues including effective reinsurance and other alternative products for maximizing balance sheet enhancement and shareholders value.
Address all issues that may become obstacles to completion of the transaction when a divestiture is anticipated.
Today’s environment requires a strategic approach to business and risk management. We help companies in this area through the development of innovative techniques to measure and analyze financial and risk performance. We also help companies evaluate and implement strategic initiatives that result in higher profitability, improved risk management and greater market share.
Valuation and Financial Reporting
We provide solid modeling for valuation purposes in all aspects of the property and casualty market place. Our models and business plans give a firm platform for valuation and financial reporting. Several of our consultants have had an active role in mergers and acquisitions in the US market place and are familiar with all the main funds and investors in this sector; including the emerging Hedge Funds who see the reinsurance industry as a non correlated risk platform to trade against their more traditional products.
Product Development and Implementation
A significant part of our consulting practice is the design, development, pricing and implementation of programme property and casualty business into the emerging Bermuda reinsurance market. We understand that product development must fit within an overall company strategy that integrates products and services with the companys’ distribution system and customer base. In addition to traditional business plan work we have a solid reinsurance presentation expertise in order for potential Insurance companies and or Managing General Agencies to maximize their success in getting the best terms out of the non-traditional Bermuda Reinsurance market place. We are not conflicted with normal brokerage operations and act as a direct advisor to the client putting the best possible plan together and identifying the right intermediaries to effect the completed presentation. In addition with access to actuarial product development expertise, we bring strong competitive intelligence and benchmarking abilities. Our product consultants are very comfortable assisting clients at any point on the continuum from conceptual guidance to full pricing and implementation support.
Capital Markets/Risk Capital Products
Companies in all industries face different challenges in every part of their businesses. Whether it is a risk of falling profits, poor production, bad weather, or product liability, businesses must protect themselves and their shareholders in creative ways.
Comp Capital does not equate risk protection solely with insurance. We recognize that shareholders are concerned about all risks, not just those that can be protected by insurance or reinsurance products. Through the years, we have access to alternative capital markets a team of professionals who work at Comp Capital, helping companies manage their risks by accessing many types of capital providers, and thereby, providing more options for our clients to more adequately protect themselves from all types of business risk.
Comp Capital provides access to capital that is typically not available through traditional risk management venues. Such capital can take various forms: insurance, reinsurance, derivatives, or securities. We can help clients to decide whether to transfer their risks in or finance them. Products such as Risk Transfer Securitization and “ Contingent excess coverage“, a form of contingent capital, can achieve such ends for top end balance sheet enhancement. Other derivative products can help clients manage earnings volatility that results from non-catastrophic events, or from energy and commodity price transactions.
We have a broad understanding of the risk management issues our clients face, and we can provide an array of resources in the solutions we present. We have developed strategic relationships with a substantial number of institutional investors, which gives us extensive knowledge of the insurance-linked securities and non-traditional insurance markets.
Today, Comp Capital is one of the few Bermuda based specialist that is non-reinsurance/insurance broker related. Our professionals work with clients to identify and quantify their risks, then advise them of possible risk management strategies. We also provide assistance in executing the strategies our clients choose to employ by structuring, documenting, and distributing non-traditional insurance.
The term “captive” traditionally describes a subsidiary that acts as an insurance company to write the parent company’s risks. Modern captives have moved beyond purely “own risk” to insure those of third party customers, employees, joint venture partners, and those who insure pure third parties.
Comp Capital can direct clients to regulated Captive Mangers it has relationships with in a “user-friendly” manner. In essence, we act as an extension of your risk management department to help you establish and manage a captive. Comp Capital can also help you participate in a rent-a-captive for those clients where forming their own is not feasible.
There are a number of reasons to consider forming a captive:
Cost Reduction – By direct access to reinsurance markets and by calculation of your premiums using own company superior claims data rather than industry-wide standards
Coverage – When particular covers are unavailable or unacceptably priced in the commercial insurance market
Control – Through risk management team control rather than that of the commercial insurance market
Cash Flow – The captive earns investment income on premiums and capital during the period over which losses are paid out
Capacity – Through direct access to the reinsurance market; over time, successful underwriting creates surplus in the captive, enabling the parent to increase retentions
Continuity – The ability of the captive to modify its business plan allows a client to stabilize its risk financing program during both hard and soft insurance market cycles.
Capture Risk Management Results – Segregating funds in a captive helps insure funds remain for risk financing purposes; captives also help the risk management function to diversify into a profit center by demonstrating the cost-saving results in a meaningful financial statement package as well as providing a means to insure controlled unaffiliated partners such as vendors, customers, franchises, and joint venture partners .
Comp Capital does not provide any third party services and or advice and only directs clients to its own regulated relationships .