Reinsurance broker Howden Re and Keenan have completed a strategic Loss Portfolio Transfer (LPT) between one of the largest California workers’ compensation joint powers authorities (the JPA) and a top-ten global reinsurer.
Howden Re was responsible for facilitating the commutation with historical markets and brokered the loss portfolio transfer for the transaction.
The move involved a collection of historical reinsurance treaties covering approximately $100 million in California workers’ compensation loss reserves spanning multiple underwriting years.
Using an LPT, the reserves were then transferred to the Reinsurer. Manager of the JPA, Kennan – a provider of insurance and financial solutions for schools, public agencies and health care organisations, with expertise on employee benefits, risk management, claims services, and technology – retained claims handling responsibility.
Seth Ruff, Head of Legacy and Structured Reinsurance, Howden Re, stated: “Howden Re is thrilled to broaden our support of Keenan in their mission to deliver superior risk solutions to self-insureds.
“This transaction exemplifies our commitment to providing innovative reinsurance and capital solutions that meet the unique needs of our clients.”
John Stephens, President, Keenan, commented: “Broader coverage at a lower cost – Howden Re truly delivered with this creative solution. They were thoughtful from start to finish and brought great innovation, analytics, and energy. ”
