Examples

When does transfer of Run-off make sense? – Concrete examples from the underwriting business

• Discontinued line of business which is likely to take years to run off and where in the past subsequent technical reserves have regularly needed to be built
• Insurer has (partly) ceased underwriting in foreign jurisdictions – however the business is still in the Run-off phase
• Previously “purchased” reinsurance protection is at risk of being lost because the reinsurer is no longer economically stable or transacts the business itself
• Reinsurance protection is to be transferred abroad and terminated within the scope of a scheme of arrangement. As a result, the insurer has to bear the risk itself
• The insurer would like to transfer all risks from certain years/years of issue
• Discontinuation of a group’s marginal activities, e.g. strategically unimportant subsidiaries in which existing business still has to be run off
• A subsidiary can only be closed when finality is achieved for all underwriting business – here again the transfer of existing business to DARAG can prove meaningful