2114 3291 Corinthian Pitch Book Design Revision Digital - Flipbook - Page 6
RISK CONTROLLED CONFIDENCE
Our management and investment teams focus on the pinnacle of opportunistic
investment strategy; leveraging existing portfolios through an additional platform by
overlaying a conservative, non-correlated fixed income product.
That platform is a unique reinsurance program offering risk-controlled investment
confidence at every stage of the insured product’s evolution.
Our proven ability to grow a financial institution that offers deep value through a
consistently managed, controlled-risk investment has become the hallmark of our
earned confidence.
Risk diversification – Treaties are being
entered into and assuming a variety of risks
across a diverse group of target markets
and demographic profiles.
Proxy underwriting – Strong lead
reinsurance and generally broad backing by
commercial reinsurers supports the viability
of a particular treaty year.
PROGRAM RISKS
Alignment of interests – Sharing risk up
and down the transactional chain with all
stakeholders is key to ensuring consistently
predictable results over time.
Time horizon – Participation over multiple
years with the option to maintain
participation gives assurance that a poor
performing year will be remedied in
subsequent renewals.
COVERAGE RISKS
Large populations – Large numbers of
individual policies are more predictable
using actuarial modeling and are more
reliable over time.
Short tails – The risks we look for are shorter
in tail, removing some uncertainty and
enhancing predictability over time.
Alignment of interests – Producer “style”
and “integrity” drive the policies that are
underwritten and added to the reinsurance
treaty, so risk is shared across all involved.
No catastrophic risks – Target business is
always in the definable first working layer
of the subject policy risks and never in the
catastrophic layers.
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Proxy underwriting – A strong fronting
carrier and lead quoting reinsurer panel
participant is performing traditional
underwriting evaluations on all risks the
company assumes.
GENERAL INVESTMENT RISKS
Diversification of LOCs – Your investment
is aggregated with all other LOCs and
enjoys full diversification across each treaty
and program.
Extremely low overhead – Our general and
administrative expense ratio is key to our
competitive advantage as we outsource
the workload and allow other program
participants to do the heavy lifting.
Statutory LOCs – LOCs are issued directly
into trust accounts for the benefit of the
third party insurance carriers and can
only be drawn upon by the corporate
trustee. In addition, they can only be
drawn upon after all premium dollars
held in trust are depleted.
Sinking fund – There are no cash flow
issues due to a sinking fund for investor
payments initiated at the onset of new
reinsurance business acquisition.
Smart distributions – There are no equity
distributions in any segregated companies
when a negative program is open that
potentially exposes an LOC to drawdown.
TREATY RISKS
No uncovered positions – Reinsurance risks
are generally covered and capped.
Diversification of treaty risks – The
potential exposure to the investment is
reduced through multiple treaties, both
in different books of business (different
cells) and through subsequent renewals of
existing books.
Geographic diversification – Treaties are
being entered into and assuming risks
across most US States.
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