Case Study

Loss Portfolio Transfers

Loss Portfolio Transfers

Loss portfolio transfers help companies manage uncertainty around large deductible or self‑insured liabilities that accumulate over time through operations or acquisitions. These contingent liabilities—such as workers’ compensation, general liability or professional liability—can materially affect earnings because payment amounts and timing are unpredictable. An LPT consolidates and transfers a portfolio of known and unknown losses to a reinsurer, providing financial certainty, stabilizing the balance sheet and reducing the volatility associated with long‑tail claims.

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