IDEAS WORTH CONSIDERING

Reduce your expenses and disbursements by 50%, while reducing your revenue by only 25%.

ABC insurance company sells a traditional fixed annuity. They have a spread of 100 bp in the first five years and 300 bp thereafter. By coinsuring 50% with Pretime Insurance Company Limited for 25 bp in years 1 through 5 and 75 bp thereafter, they are able to continue selling the product.

Incur no cash flow strain when putting business on your books.

ABC insurance company is interested in paying a reasonable upfront commission to attract business. However, their investment strategy requires 100% of the premium to be allocated to a separate account. Pretime Insurance Company Limited is able to provide financing, so ABC insurance company can allocate the necessary funds to the separate account.

Relieve the hit to your income statement when new business is added.

ABC insurance company is not interested in sharing product risks with any reinsurer. They simply seek financial reinsurance to ease the strain on their income statement and balance sheet. Through a Modco arrangement, Pretime Insurance Company Limited can provide the necessary solution.

Lessen or completely eliminate the “left tale risk” under certain economic conditions.

ABC insurance company has three blocks of business. One is a closed block where the concern is what happens when interest rates rise. The second is a rapidly grow block, where a drop in the equity market would cause tremendous financial harm. The third is a new product set for release where the only way to offer a competitive interest rate is to invest longer than what seems reasonable. Pretime Insurance Company offers a variety of options for each of these three blocks from which ABC may select.

Alleviate yourself of the expense and exposure of maintaining a closed block of business.

Through a relationship with an affiliate organization, Pretime Insurance Company Limited is pleased to work with you in not only minimizing your financial risks but also in administering the business. Whether it involves illustrations, administrative system programming or policyholder service, we can function as your complete back office.

Introduce a new product that is unique and profitable.

ABC Insurance Company wants a competitive edge. Not just a product that spreadsheets well, but one that is different from all the rest. Pretime Insurance Company Limited has just the answer…especially if you don’t have the time, resources and budget to develop it now. Just contact us and we’ll be pleased to share some ideas with you.