Basel III regulations and Basel IV accords, require more stringent capital management.
According to Basel, risk transfer can be used as a credit risk mitigation in order to relief capital.
In a world of low return on alternative investments, the (Re)insurance industry needs to explore new products and new markets.
Basel regulation creates new business opportunities for cooperation between Banks and (Re)insurers.
CRS concept of (RE)insuring large bank guarantees portfolios, meets both parties challenges.
Identify capital mitigation potential
Full support throughout
the transaction process
Syndication to top tier (RE)insurers
Managing the policy during
the transaction period
Portfolio & single risk transactions
Bank guarantees (RE)insurance
Short & Long terms Credit Insurance
Trade and Export finance
Political Risk insurance
Unfunded silent risk participation
Substantial capital relief on existing portfolio and new business
Credit risk mitigation
Capital adequacy optimization by reducing RWA
Output floor optimization according to the standardized approach
Redirecting capital to higher return transactions
Increase exposure to large debtors
Reduce sector exposure - mainly to the real-estate and infrastructure sector.
Reduce single borrower exposure.
Credit risk diversification improvement
No interference in normal course of business
Risk participation of the (Re)insurers is on a silent basis
Long term partnership with high rated (Re)insurers that do not compete
New business opportunities with banks
Exposure to diversified high quality portfolios