Fleming Reinsurance has established a custom reinsurance facility with BevCap P&C Protected Cell (BevCap).
BevCap Captive Group (BCCG) was founded in 2008 and is a homogeneous group captive for the beverage distribution industry, domiciled in Hawaii. It was specifically designed for its unique needs and exposures, with both property and casualty and health cells.
Fleming Re’s facility provides BevCap with full economic and legal finality and on an annual basis within a single structure, assuming all workers' compensation, general liability, automobile liability and auto physical damage liabilities.
The structure can be incorporated at the onset of any new captive or other entity formation, giving counterparties a definitive exit path from their liabilities.
Fleming said it expects to complete several more transactions over the coming months.
Eric Haller, chief executive officer at Fleming Re, said: “Although a facility with recurring transactions is not necessarily a new concept, Fleming Re has developed a product with a repeatable algorithm to provide counterparties with unusual pricing certainty for future policy years which in turn provides managers and group members the ability to better optimise their programmes. The structure itself creates efficiencies for both parties and will streamline the transaction process in future years.”
BevCap said: “Fleming Re, aware of our leading position in the group captive space, came to us with this novel approach to optimising our programmes, and the benefits to the captive was immediately obvious. Together we were able to develop a solution to meet our goals on legacy liabilities.”
Stephen Minor, Fleming Re chairman, said the product delivers an unusual degree of loss portfolio transfer efficiency and a strong alignment of interest.
“We believe this structure can be replicated throughout the captive market and is reflective of the direction we and the larger legacy market is headed,” he added.
Fleming Reinsurance, BevCap Captive Group, Eric Haller, Stephen Minor