Liability Runoff Transfer
Apetrop USA is a Runoff Transaction Broker. We are a market leader specializing in advising insurance and reinsurance companies on the management or divestment of their run-off liability exposures. READ MORE
Apetrop USA is a Strategy Adviser for Captive Insurance. There are some considerable benefits in considering the formation of a Captive Insurance company. We can assist in Risk Assessment, Creation, Management, Restructuring and Closure. READ MORE
Given the inherent nature of being once, twice or three times removed from the original risk, reinsurers must perform their due diligence on new or renewal business and evaluate whether ensuing liabilities are being handled in the way they were initially intended. READ MORE
Commutation: Support and Advisement
Apetrop USA provides commutation support. Commutation provides finality on known and unknown exposures. In the life cycle of a ceded or reinsured risk, commutation is the last stop. READ MORE
Anna Petropoulos, President
Apetrop USA is the third insurance and reinsurance service provider founded by Anna Petropoulos. Apetrop Ltd and Apetrop UK were both based in the UK. Apetrop USA was formed in 2010 to meet a growing need for finality solutions in the USA. Prior to founding Apetrop Ltd., Anna held the position of Director of Reinsurance at CNA in London. Her previous employers include MFK Underwriting, Willis Faber Ltd, Scottish Lion Insurance Company and Sphere Drake Insurance Ltd.
John West, Senior Vice President, Business Development
John West is the Senior Vice President in charge of Business Development for ApetropUSA. His background includes a diverse and extensive background in insurance and reinsurance and has covered most areas of Non-Life and A&H business. Since 2010 he has focused on the acquisition and management of run-off or legacy liability. He has held senior management positions with Axa Liabilities Managers, Helix UK, Alan Gray, Inc. and the Devonshire Group. He is also on the Board of Directors of the Intermediaries & Reinsurance Underwriters Association in New York.
Adam Lewis, Vice President & General Counsel
Adam Lewis is a graduate of Harvard College and Columbia Law School. His work experience includes positions with Debevoise & Plimpton LLP, Ascending Markets Financial Guarantee Corporation and Coudert Brothers, with particular experience in the infrastructure and insurance sectors. He is admitted to the bar in New York State and Massachusetts.
Jeffrey Lewis, Senior Vice President & CEO
Jeffrey Lewis has worked in the insurance industry for 25 years, primarily managing technology systems. Besides direct industry experience with Massachusetts Mutual and Phoenix Life, he has had an extensive career in general management and business consulting. He has been involved with Apetrop USA for over three years as the enabling legislation, Act 93 or LIMA, was developed and passed by the Vermont legislature. He now helps lead the company to build business on the opportunity LIMA created.
Captive insurer commuting assumed reinsurance exposure
Bally’s Total Fitness Corp had a captive subsidiary named Lincoln Indemnity. We were retained by Bally’s to commute all outstanding liability against Lincoln Indemnity from an insolvent cedant/fronting company. In a matter of three months, we were able to discover, analyze and commute the residual policy with the problematical cedant, resolving the claim and returning their historical deposit. This enabled Bally to close the Lincoln Indemnity captive immediately, saving our client money both from the transaction itself, and the ongoing costs of keeping the captive open for an indefinite period, thus achieving their ultimate goal of finality and closure.
Captive Formation for a Company Actively Pursuing Acquisitions
- Company with acquisition targets requires risk analysis and eventual Captive formation.
Our client is heavily involved in acquiring targets which will inherently multiply their size. What they will face is a concurrent rise in risk exposure. Our job is to make sure that they are covered with their existing structure as well as for their evolving platform. While they are not at the point of considering a True Captive structure, their cost and risk can best be managed by a series of stop-gap measures and the eventual creation of their own captive company.
Self Insured Corporation for Work Comp
- Self-insured corporation closure and transfer of outstanding liability to UK acquirer
Our client had incorporated in 1995 in order to self insure for Workers Compensation cover for their member companies. A few years later, when the market demonstrated cheaper premiums than their program offered, they closed the operation. However, given the nature of the cover, the State Regulator required the corporation to maintain funds with the state in order to satisfy any claim which may have arisen for the ultimate lifetime of any possible claimant. So, even though the corporation had ceased, they had to continue filing tax returns and stay in play for an additional 18 years – until we brought them a solution. We introduced a buyer who was interested in buy the liability and the fund and allow full and final closure to the corporation.
Collection of complex, aged reinsurance recoverables from US reinsurer
The General Counsel of this large insurer approached us to resolve a complicated reinsurance balance. While the size of the balance was relatively large, the main concern was the contract, the involvement of a large TPA and the need to maintain a healthy working relationship with the parent of the reinsurer.
Large multi-line carrier qualify and close runoff
Objective analysis of global liabilities, advice on closure mechanisms and involvement in certain transfers and commutations.
A large U.S. based Insurer has been carrying a diverse portfolio of liabilities accrued on reinsurance written around the world. They understand that each closure mechanism available to achieve finality has its own unique characteristics. Likewise, each slice of their portfolio requires a unique approach. Given our global background, we have specific knowledge and utilization of each mechanism various jurisdictions afford; Schemes of Arrangement, Part 7 transfers, Rhode Island Reg 68, Vermont’s LIMA legislation, reinsurance, commutation, outsourcing. Our involvement offers the client an opportunity to have an independent offer perspective on regulatory issues, cost, time, reputational risk, semi/full closure.
LIMA Legislation in Vermont
Developing, drafting and working with the Vermont Legislature to pass the Legacy Insurance Management Act.
Vermont is already on the leading edge of Insurance Regulatory solutions. When ApetropUSA approached them with the concept of accommodating the transfer of Runoff Liability, they were on board. AUSA worked with the Commissioner and the Legislature to draft and pass the Legacy Insurance Management Act. You can read more about it here. It is estimated that there is approximately $285 Billion of runoff liability in the US alone.