Business Growth

A solid foundation for sophisticated capital structures.

Guy Carpenter helps Chief Financial Officers and Reinsurance Buyers analyze an expanding range of capital solutions, and integrate those that best fulfill immediate needs and long-term enterprise goals.

New sources of capital present insurers with new ways to diversify their balance sheets, but the equation of diversification is increasingly complex. Every source of capital has its own advantages, limitations – and risks. Our role is to provide the clearest view of all available alternatives and where they fit in each client’s overall growth strategy.

Guy Carpenter helps insurers maximize risk-adjusted returns – and minimize capital costs. We assist insurers in developing the optimum structures for their reinsurance and hedging programs: balancing counterparties, capital sources and contract durations.

Guy Carpenter has the scope and sophistication to help insurers develop durable capital structures using a mix of permanent and market-sourced capital, including catastrophe bonds, Insurance-Linked Securities, sidecars, collateralized reinsurance vehicles and Industry loss warrants.

Advisors who’ve been there. Beyond its expertise across traditional and alternative risk transfer, the Guy Carpenter team brings extensive professional experience with insurance companies.

Of Note

Capital - multiple issues require multifaceted solutions.

Matthew Day asks "What drives (re)insurer capital planning?" Maybe it is risk appetite, internal dynamic capital modeling or actuarial analysis. Or perhaps it is external pressure from regulators, rating agencies or investors. In reality, it is probably a combination of all of these factors.
ARTICLE

An X-Ray of Capital Costs

Guy Carpenter’s capital tranching framework helps clients measure and improve their cost of capital, assess the cost-effectiveness of reinsurance purchases, and shape optimal cost structures going forward. The unique model calculates reinsurers’ cost of capital layer by layer to generate a clearer, more actionable picture for our clients.