Ri3k Sells Run Off Centre
London-based ri3k, a leading provider of secure infrastructure for the global reinsurance industry, announced the sale of its Run Off Centre to legal/actuarial consultants James, Brennan & Associates.
“The deal, which is subject to contract, provides James, Brennan & Associates with an exclusive license to use and develop the Run Off Centre’s web based software,” said the bulletin. It described the program’s main features as follows:
— An industry specific global contact database
— Project based electronic document management
— Debt Market for the trading of receivables
— Legal Library of relevant legal precedent documents
— Automated deal maker
— Discussion Forums to gather information from industry peers
— Secure and private messaging
The announcement noted that ri3k launched the Run Off Centre, originally called the Debt Market, in 2001. Alex Letts, ri3k CEO, commented, “This sale is a logical progression that will take place with most of our technology builds. We are now focusing exclusively on the development of our European and US reinsurance hubs.”
“James, Brennan & Associates is a niche legal/actuarial consultancy that specialises in run-off business,” the bulletin noted. It focuses on providing analysis and solutions to some of the difficult issues facing companies in run-off, including:
— Inwards commutation and its detrimental effect on outwards reinsurance – how to retain the reinsurance asset
— The use of set-off between different legal entities to mitigate credit risk exposure.
— Claims spirals and the economics of “collapsing” such claims
James, Brennan’s Chief Actuary, Dewi James, explained, “The Run Off Centre provides us with a powerful tool to assist in the implementation of our innovative solutions in the reinsurance forum. It will also prove useful within complex insurance groups in consolidating data on counter parties leading to negotiated settlements. We look forward to working with existing and new users to further enhance this product.”
Managing Director for the Run Off Centre, Kelly Fegan, stated, “We developed the world’s first web based electronic commutations and debt trading facility, and are delighted to have identified partners who are well positioned to make best use of our technology.”