Howden Tiger, the reinsurance broking arm of the global insurance group Howden, in collaboration with Swiss Re Group, a leading global reinsurer, has successfully completed a strategic Loss Portfolio Transfer (LPT) for Kookmin Best Insurance Company, LTD (US Branch) (KBIC).
Howden Tiger served as the advisor on this transaction. In this deal, KBIC has transferred approximately $100 million in net loss reserves and unearned premium reserves associated with its US commercial multi-peril and workers’ compensation business.
Swiss Re, through its subsidiary Swiss Reinsurance America Corporation, assumed claims handling responsibility and provided a ground-up limit of $155 million.
The structured agreement allows KBIC to expedite the strategic wind-down of its US branch while ensuring continued protection and claims support for its policyholders.
The comprehensive transaction covers KBIC’s existing loss reserves and unexpired policies. Additionally, Swiss Re assumed responsibility for KBIC’s remaining catastrophe risk in a parallel transaction.
Seth Ruff, Head of Legacy & Structured Solutions at Howden Tiger, highlighted the collaborative effort: “This deal illustrates the power of combining Swiss Re’s structuring and underwriting capabilities with Howden Tiger’s legacy and capital markets expertise. Together we helped KBIC advance their strategy and unlock capital with a broad solution covering loss reserves, unearned premiums, cat exposure, and claims administration.”
John Levy, Head of US Structured Solutions at Swiss Re, emphasised the creative collaboration: “Through creativity and collaboration we designed and closed a unique structure that enables KBIC to advance their corporate strategy.”
Marty Rosemann, Head of Transaction and Legacy Management at Swiss Re, underlined the importance of trust in the partnership: “KBIC needed a trusted partner that would manage KBIC’s claims while understanding the importance of protecting KBIC’s reputation.”
