Posts Tagged ‘Day (Matthew)’



October 24th, 2018

A Strategy for Market Volatility: Portfolio Optimization - GC@BB Commentary

Posted at 1:00 AM ET

dhru_jay_1day_matthew_biosnyder_jack_bioJay Dhru, Global Head of Business Intelligence; Matthew Day, Managing Director; Jack Snyder, Managing Director, Ratings Advisory

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  • Rising loss costs and expenses consume an ever larger portion of reserves
  • Optimized portfolio construction as vital as upfront underwriting of a risk
  • Excess capacity is pressuring insurers’ underwriting profitability

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September 9th, 2018

A Strategy for Market Volatility: Portfolio Optimization - GC@MC Commentary

Posted at 1:00 AM ET

dhru_jay_1day_matthew_biosnyder_jack_bioJay Dhru, Global Head of Business Intelligence; Matthew Day, Managing Director; Jack Snyder, Managing Director, Ratings Advisory

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  • Rising loss costs and expenses consume an ever larger portion of reserves
  • Optimized portfolio construction as vital as upfront underwriting of a risk
  • Excess capacity is pressuring insurers’ underwriting profitability

Continue reading…

May 7th, 2015

Reinsurance Versus Subordinate Debt: Which is Best for Solvency Capital?

Posted at 1:00 AM ET

matt-day-headshot-sm5ross-milburn-pic-128x149smallMatthew Day, Senior Vice President, Guy Carpenter Strategic Advisory and Ross Milburn, Managing Director, GC Securities*, a division of MMC Securities (Europe) Ltd., which is authorized and regulated by the Financial Conduct Authority

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Here we review how a holistic approach to managing solvency capital requirements can benefit insurers’ bottom line: 

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April 30th, 2015

Reinsurance Versus Subordinate Debt: Which Is Best for Solvency Capital? Part III

Posted at 1:00 AM ET

matt-day-headshot-sm7ross-milburn-pic-128x149small2Matthew Day, Senior Vice President, Guy Carpenter Strategic Advisory and Ross Milburn, Managing Director,  GC Securities*, a division of MMC Securities (Europe) Ltd., which is authorized and regulated by the Financial Conduct Authority

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What About Volatility?

Insurers understand volatility in respect of their insurance and investment risk and reinsurance can play a significant role in controlling this. However, another form of volatility exists in respect of the pricing and availability of reinsurance and sub debt. To counter this clients are encouraged to consider multi-year reinsurance transactions, retroactive solutions and to explore sub debt issuance that by nature is long term. By staggering the end-dates of different transactions, a natural hedge against rising rates on line and debt market spreads can be created.

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April 29th, 2015

Reinsurance Versus Subordinate Debt: Which Is Best for Solvency Capital? Part II

Posted at 1:00 AM ET

matt-day-headshot-sm6ross-milburn-pic-128x149small1Matthew Day, Senior Vice President, Guy Carpenter Strategic Advisory and Ross Milburn, Managing Director,  GC Securities*, a division of MMC Securities (Europe) Ltd., which is authorized and regulated by the Financial Conduct Authority

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Increasing the Permanent Capital Available

Sub debt is an additional part of the capital tool kit available to insurers and can often be used to greater effect as part of a tailored solution than in isolation. In conjunction with a risk and/or capital management-based approach to the mitigation of each of the solvency capital requirement (SCR) components, management may consider issuing sub debt to provide growth capital (organic and through acquisition) as well as make a longer term contribution to SCR coverage.

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April 28th, 2015

Reinsurance Versus Subordinate Debt: Which Is Best for Solvency Capital? Part I

Posted at 1:00 AM ET

matt-day-headshot-sm5ross-milburn-pic-128x149smallMatthew Day, Senior Vice President, Guy Carpenter Strategic Advisory and Ross Milburn, Managing Director,  GC Securities*, a division of MMC Securities (Europe) Ltd., which is authorized and regulated by the Financial Conduct Authority

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In recent months a number of market commentators have opined on the merits of proportional reinsurance versus subordinated debt (sub debt), some favoring reinsurance solutions and some favoring sub debt, but generally finding results in line with the products their companies offered. Guy Carpenter feels reinsurance or sub debt alone is unlikely to provide the best solution to meet solvency capital requirements. Instead, a blended approach should be considered.

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October 19th, 2014

Capital – Multiple Issues Require Multifaceted Solutions

Posted at 11:30 PM ET

matt-day-headshot-smMatthew Day, Head of Rating Agency Advisory, Strategic Advisory EMEA - Capital Optimization

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What drives (re)insurer capital planning? Maybe it is risk appetite, internal dynamic capital modeling or actuarial analysis. Or perhaps it is external pressure from regulators, rating agencies or investors. In reality, it is probably a combination of all of these factors. Faced with conflicting views of what constitutes both the available capital and the assessment of the amount required relative to the risk, optimizing (re)insurer capital adequacy is likely to be a key challenge confronting a company. Rarely will the company be able to fully satisfy all the demands. Developing a management framework to evaluate, analyze and compare these divergent needs is therefore essential to extract the maximum efficiency from (re)insurer corporate capital structure.

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October 23rd, 2012

Standard & Poor’s Proposed Criteria – Guy Carpenter’s View on Key Ratings Drivers

Posted at 1:00 AM ET

arendal_birgitte_photomatt-gc-portraitBirgitte Arendal, Senior Vice President and Matthew Day, Senior Vice President
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Standard & Poor’s (S&P) proposed insurance rating criteria framework includes significant changes that may adversely impact financial strength ratings of (re)insurers. The new framework is expected to be published and become effective in early 2013. Guy Carpenter has examined the three key proposed criteria changes. In our opinion, these can drive rating changes especially for (re)insurers in the United States and other developed countries with “A” and “AA” range financial strength ratings.

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September 21st, 2012

Lloyd’s: Syndicate Ratings/Assessments

Posted at 1:00 AM ET

Matthew Day, Senior Vice President
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The Market ratings remain the principal measure of financial strength to be applied to operations underwriting at Lloyd’s, but several rating agencies separately provide syndicate-specific analysis. These analyses can support the reinsurance-buying decision-making process, but it is dangerous to rely on them without understanding the varying underlying methodologies. (None of these products are endorsed by Lloyd’s.)

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