Global Structured and Financial Solutions

The International team, encompassing EMEA, Asia Pacific and Latin America, are equipped with the knowledge and expertise to design, develop and place structured and financial solutions across these regions.

Structured and financial solutions are an effective capital substitute and can be used to your benefit in a number of ways.

Examples of such solutions include:

• Longevity risk — a flexible solution that has a very competitive cost of capital and is particularly beneficial for a portfolio containing deferred policies
• Lapse risk — experience across Europe and Asia, covering multi-year and multiple lapse scenarios
• AI reinsurance placed in Asia and the European market, on a funds-withheld and funds-transferred basis
• Extreme mortality reinsurance to cover pandemic risk
• Reinsurance financing to fund acquisitions, improve capital position and change the cash flow patterns
• IFRS17 solutions to manage the volatility in the profit and loss (P&L) statement.
• Group reinsurance to reinsure subsidiary entities at group level

Today, reinsurance is being used in all areas of the life industry — life insurance, capital-focused transactions, both open and closed annuity blocks, pension risk and long term care (LTC) funding products.

The Gallagher Re Life Solutions Group is a risk and reinsurance advisory team that provides a unique suite of services designed for insurers, reinsurers, distribution groups and capital market entities. Our team — strong in actuarial skills, financial expertise and product knowledge — has an average of 30 years' experience in the life and reinsurance industry. We focus on assisting clients with life, annuity and LTC insurance transactions and specialise in asset-intensive (AI) liabilities.

We have an in-depth understanding of the key challenges that life insurers face and offer unique, well-designed reinsurance solutions that can mitigate or solve them. Gallagher Re stands out in the life reinsurance industry for the expanded client services, including:

• Access to a large, diverse marketplace, which drives competition and identifies new partners, paired with strong relationships that facilitate quick and cooperative negotiation
• Market intelligence of business terms and conditions to verify value and accuracy
• Experience crafting bespoke structures that meet transaction objectives and minimise counterparty and other scenario-dependent risks

Reinsurance for life companies is about more than just hedging mortality risk. Reinsurance can optimise capital efficiency, balance risk and reward, and grow sales.

Gallagher Re has extensive knowledge and experience within the UK structured market, advising and placing a range of structured and financial solutions. Key areas of focus include:

Funded Re

We provide end-to-end advisory and placement services for bespoke funded re transactions across the full spectrum of transaction sizes and deferred proportions.

We enable clients access to our panel of over 20 well-rated funded re reinsurers with deep investment expertise and reinsurance capacity. Our connections to top-level management at reinsurers and our knowledge of reinsurers' solvency, rating and accounting regimes enable us to negotiate effectively on behalf of our clients and to focus on win-win solutions.

We support new entrants in the UK bulk-purchased annuity market in designing their reinsurance strategy and executing reinsurance transactions.

Small schemes

We structure and execute framework reinsurance contracts (i.e., 'flow arrangements') for bulk purchase annuity (BPA) players with reinsurance counterparties to streamline the reinsurance journey of small schemes in the format of both longevity flow and AI flow reinsurance.

Longevity reinsurance

We collaborate closely with our affiliated company, Buck Consultants, to provide feasibility study and full brokering service of longevity swaps to UK pension schemes.

We have deep experience structuring and placing longevity transactions in various formats — standard longevity swap, cancellable longevity swap and longevity stop loss — to insurers under both internal model and standard formula.

Other financial solutions

We have experience in executing reinsurance solutions targeting at a wide range of risks, including mass lapse, guaranteed annuity options and value in force (VIF) structures.

We design bespoke reinsurance solutions to help clients optimise across a full range of performance metrics, including liquidity, Solvency II capital, rating agency capital, IFRS17 and generally accepted accounting principles (GAAP) accounting.