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(From Reinsurance)
Byline: Scot Ramsay, chief financial officer at Ruxley Ventures.
The advent of solvent schemes of arrangement as a recognised technique for dealing with risk carriers' discontinued books of business has led to real progress in recent years on dealing with the legacy problems of insurers and reinsurers.
Prior to the development of solvent schemes as a mechanism for delivering finality, complete finality solutions had proved elusive. Reinsurance or the outright sale of a problem portfolio simply recycled the issue within the market and often carried unpalatable requirements for a hefty injection of capital.
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