As a result of the recent global economic crisis, both public and private sources of capital (as well as their regulators) have elevated the demand for increased identification, assessment and management of the risks they assume.
Against this background, the rating agencies and financial markets are aggressively reviewing submitted transactions seeking financing against the full composite of inherent risks; but, with the emphasis on those risks/exposures with the potential to disrupt the revenue streams required to repay the underlying debt service; i.e. a predictable, secure cash flow is a primary concern of any lending institution asked to extend financing.
It would be logical to assume that those transactions/projects with supporting insurance programs tailored to respond to the key concerns of both the lenders and investors supplying this capital should have a competitive advantage. Unfortunately, most financial/insurance placements are pursued in disjointed isolation without a proper appreciation of the “risk” interrelationship of the disciplines, and the benefits of a properly structured placement.
Integrated Insurance/Financial Capital Structuring
CRCapital Advisors focus is on “structure”. We firmly believe that designing an “integrated” financial/insurance structure that facilitates a difficult financing and/or improves the overall cost of funds is a better value added pursuit than an independent/disjointed approach in which these complementary disciplines are pursued in isolation.
Structured Finance
- Investment Grade Commercial Real Estate
- Government/Municipal Projects
- Infrastructure Projects
- Trade/Transportation
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Financial Insurance
Monoline Insurance Providers
(Financial Guarantees)
Government Providers
(Financial Insurance/Credit Enhancements)
Surety/Bond Providers
(Completion/Performance Guarantees) |
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Specialty Line Insurance
(Contract & Financial Risk)
- Enhanced Business Interruption: Financial Loss – Property Damage
- Trade Disruption: Financial Loss – Trade/Supply Chain Disruption
- Force Majeure: - Financial Loss – Acts of God, Change of Law, Etc.
- Efficacy Insurance: Financial Loss – Systems Performance
- Liquidated Damages: Financial Loss – Delay/Performance
- Residual Value: Financial Loss – Asset Value
- Political Risk: Financial Loss – Political Perils
- Credit Insurance: Financial Loss – Insolvency/Default
- Contingency: Financial Loss – Miscellaneous Risks; i.e. Weather, Tax Credits, Legal Awards, Etc.
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Traditional Line Insurance
(Fixed Asset & General Liability Risks)
Property
Property/BI
Construction
Marine Transit/Storage |
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Liability
General
Auto
Workers Comp
Professional
Umbrella/Excess |
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We understand Financial/Capital Market credit and structure requirements. We understand Rating Agency’s rating criteria. We understand the Insurance Market’s capability and underwriting capacity (both underwriting and investment) well beyond the traditional lines of coverage. Most importantly, we understand how to combine and utilize the diverse mix of supporting insurance/financial market products and capital needed to structure the most cost effective solutions to our customer’s and client’s objectives.
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