Formation of Risk Transfer Underwriting, Inc.

Newly established Managing General Agent, Risk Transfer Underwriting, Inc., to offer an innovative solution for self-insured liabilities allowing release of collateral obligations

Greenwich, CT - June 1, 2011 – The team behind Grafton Europe Insurance Company Ltd. (A.M. Best A-) announces the launch of Risk Transfer Underwriting, Inc. (“RTU”), a Managing General Agent (“MGA”).  RTU offers a solution to the problem of long-tail liability exposures for US self-insureds and the resulting issue of “collateral stacking”. 

RTU enables companies with retained insurance liabilities to achieve finality on prior years of exposure and release outstanding Letters of Credit supporting these legacy liabilities.  Candidates for RTU’s product include captive insurance companies, risk retention groups, companies with self-insured retentions, and companies with large deductibles  In short, companies utilizing any method of retaining insurance liabilities on their balance sheets can transfer legacy liabilities through RTU. 

RTU issues coverage on past liabilities across a number of classes including workers’ compensation, general liability, automobile liability and professional liability currently weighing-down balance sheets.  RTU is acting as sole agent for one of the largest US insurers, rated A++ (Superior) by A.M. Best.

RTU’s President and CEO, Paul Dassenko is a recognized leader in insurance restructuring and reorganization, whose impressive track record includes the turnaround of Converium Holdings (North America), and GIO Insurance Ltd (Australia).  Mr Dassenko said “The launch of RTU in the U.S. means that historic inefficiencies of self-insurance, particularly costly collateral for legacy liabilities, are a thing of the past.  Given the importance of self-insurance to corporate risk management generally, our solution offers a real opportunity to free-up capacity and allow self-insureds to continue writing new business through their existing self-insurance programs. We also provide a means to close down self-insurance vehicles as well as to facilitate divestiture or acquisiton of companies with legacy self-insured liabilities”.

Caspar Gilroy, RTU’s Chairman stated, “We have a talented management team and believe our timing for this product couldn’t be better.  Our product is a compelling response to demand by large US corporates for increased certainty and greater flexibility in managing their balance sheets.  In the current economic climate companies are looking for every opportunity to maximize the use of capital and improve results.”

Dassenko went on to say, “While various elements of RTU’s product have been available for some time, this is the first time all of the processes have been brought together in one place to create a unique, cost-effective method of achieving total finality. Right now, we offer the only one-stop solution that addresses the credit concerns of companies fronting self-insurance programs while at the same time bringing finality to a self-insured’s retained legacy risk.  Self-insureds will find that RTU offers true finality not available in a loss portfolio transfer or a typical commutation.”

About RTU

Based in Greenwich, Connecticut, RTU is completing the licensing process in all states. Its products will be available to captive insurance companies and companies with retained insurance liabilities through all major insurance brokers.

Contact:

Paul Dassenko, President & CEO
Risk Transfer Underwriting, Inc.
Two Sound View Drive, Suite 100
Greenwich, CT 06830
Telephone:  (203) 622-4920
Mobile: (860) 866-7145
E-mail: [email protected]
Web:  www.risk-transfer.com