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Bankruptcy
We structured and placed complex risk in the 4th and 9th largest bankruptcies in US history
The Scenario:
President’s Task Force on the Automotive Industry was seeking an independent advisor to work through variety of risk, collateral, surety, insurance and self-insurance elements, which included pre-, post-, and liquidating trust liabilities in its restructuring efforts.
Our Solution:
We manuscripted global D&O, Pension/ERISA, Crime, and Employment Practices policies, conducted an analysis of self-insured Workers’ Compensation in 47 states, restructured the security and collateral package of the respective insurance and surety programs and achieved material expense reductions. We also served as the risk manager to the liquidating trust during the wind down period.
Forensic Claims Analysis
We orchestrated settlement negotiations for an unpaid claim, achieving a reward of $115MM in 3 months
The Scenario:
Portfolio asset suffered a catastrophic loss due to collapse of a recently constructed South American hydroelectric tunnel. Due to disputes on reconstruction terms and policy discrepancies no payment had been made by the insurers in 2 years. Neither the global broker, nor additional claim resources engaged out of London, were able to secure an advance or any affirmative position on coverage. In the interim, the investor issued an additional capital call to fully fund the reconstruction of the tunnel.
Our Solution:
We conducted a claims and policy analysis, determined a clear path to coverage, facilitated principal-to-principal meetings with the senior executives of the insurer and sponsor, and achieved a recovery of $115MM within 3 months.
Security & Collateral
We reduced surety bond collateral requirements by over $130MM
The Scenario:
PE Target with $148MM in outstanding surety bonds, secured solely by the Parent Seller’s balance sheet, was faced with the potential of posting Letters of Credit to secure the new $148MM bond line at close, which was not contemplated within the post-close financial models or revolver capacity.
Our Solution:
We sourced an alternative brokerage partner, created a consortium of surety underwriters, and highlighted the impact of collateral on the relevant pro forma financials and debt/equity structures to reduce the collateral requirement by 90% at close and ultimately eliminate the requirement at renewal.
Audits
We conducted a comprehensive audit that Led to over $10MM in savings
The Scenario:
Multinational asset manager, with disjointed insurance procurement processes, facing enormous growth in insurance spend and loss cost globally, with its 27 portfolio assets.
Our Solution:
We identified scope of work for each portfolio company, implemented Gantt process management, audit review protocols, interacted with individual management teams and respective brokers and TPAs and provided a comprehensive report citing analytics and specific recommendations in an extremely compressed timeframe. The audit and implementation of our findings yielded over $10MM in savings in year 1 and the ability to achieve future consistency in risk & claims oversight.
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Frequently asked questions
Why do I need CRS if I have an insurance broker? We are solely an outsourced risk advisor and have an unbiased and unencumbered view of the insurance marketplace. Our primary mission is unearthing and protecting vulnerabilities–especially those that could blindside an operation. Insurance brokers focus primarily on the insurance policy placement on your behalf and are compensated based on the insurance purchased. CRS leads structuring insurance and financial solutions that address such exposures and serve as a navigant in all aspects of the risk continuum. CRS is not an insurance broker nor is it an insurance carrier. We are not in competition with any insurance or risk partner that a client may have.
How do your services compare with those of other consultants? We are not a typical consultant. We are uniquely positioned as a market maker and are fiercely independent. Our sole focus is to serve as a fiduciary and an extension of our clients. Our proprietary relationships and access to market aggregators and facilities enable us to provide the necessary leverage and alternative opportunities that other consultants cannot. CRS goes beyond recommending insurance and conducting risk analytics, we provide excellence in execution. We don’t just uncover what you need, we deliver it.
Why do I need CRS if I have a Risk Manager? We serve as an additional resource to management teams. We are not seeking to replace any internal risk manager, rather we provide independent guidance, access to key partners, identify alternative structures and coverage items and drive opportunities to capture cost savings. In claims scenarios, we work with internal RM, legal, finance and IT to heighten attention and advocacy in the insurance capital markets to enhance recovery. We are in the marketplace as an independent on virtually every line of insurance, globally, 365 days a year, with every relevant carrier, broker, outside lawyers, claims adjusters and actuaries. We provide an added arsenal of tools to enhance a risk manager’s renewal results, programs and deliverables and have years of proven, consistent results.
Do CRS’s services include employee benefits, retirement and/or medical analysis? We made a choice to decline to continue to build a robust, in-house employee benefits, medical and retirement practice. Primary reasoning: the cost to have best in class benefit/medical professionals, pension actuaries, ERISA attorneys (and global equivalents) outweighed the value we would achieve at choosing best-fit partners around the globe that deliver results for our clients. Should you need such services, we are happy to provide references.
If you have any further questions, please contact us.
