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Wilmington Trust, a leading provider of institutional trustee, agency, and administrative services through its Corporate Client Services (CCS) business, announced a new offering, an English Law Reinsurance Trust Agreement, to further expand the company’s international services for captive insurance companies, providing mitigated risk and a cost-effective alternative to traditional letters of credit.
“Wilmington Trust’s expansion into the international markets has now made an important step forward with the introduction of an English Law Reinsurance Trust Agreement,” said Christophe Schroeder, executive managing director of CCS’s European business. “This agreement has been drafted to offer the captive insurance industry in the U.K. an additional cost effective service in support of their collateral requirements.”
Through Wilmington Trust expertise, companies will be able to take advantage of the risk mitigation techniques allowed under “Solvency II,” the new regulatory requirements for insurance firms in the European Union. A reinsurance trust gives risk portfolio managers at fronting insurance companies an alternative collateral support service to mitigate the current bank concentration risk associated with letters of credit.
“The English Law Agreement has the potential to offer an industry solution to the risk manager’s growing concerns. Wilmington sees this new service for the international market as an excellent way to increase its support for the captive insurance market,” said John Traynor, managing director of client development in the Global Capital Markets Group for CCS. “Wilmington Trust has extensive experience in this industry and we are pleased to offer additional services to our clients.”
Captive insurance companies, also known as captives, are insurance companies that are owned by the organizations they insure. Wilmington Trust provides these companies with captive management services through offices in Delaware, Nevada, South Carolina, Vermont, and the Cayman Islands, which are among the most popular locations for captive insurance company operations. Wilmington Trust Captive Management Services is part of Wilmington Trust’s CCS business.
CCS has expanded its product offerings to accommodate developments in the marketplace. In recent years, CCS has added teams of experts in loan administration, corporate restructuring, high-yield debt issue services, tender option bond services, insurance trusts, and project and equipment finance. Wilmington Trust’s growth has also been bolstered by changes in the competitive landscape which have led to new client acquisitions and increased demand for CCS’s distressed debt, bankruptcy, and successor trustee and loan administration services.
In addition to increasing its product offerings, CCS introduced its “One Global Model” initiative to reinforce the company’s ability to serve corporate clients in global capital markets and accelerate CCS’s already-strong growth. CCS’s global expansion initiatives date to 2002, when Wilmington Trust established a presence in London. This has helped multinational clients who want to combine the advantages available in multiple jurisdictions with the convenience of working with a single service provider.