Insurance-Linked Securities (ILS) Solutions
SRS provides a highly qualified, trusted and independent service to the Insurance-Linked Securities (ILS) and alternative risk market.
By integrating our dedicated fund administration team with our highly experienced insurance accountants, we are able to provide a truly comprehensive convergence service to ILS clients on a global scale.
SRS uses industry-leading fund accounting technology supported by flexible customized database applications to manage and administer ILS vehicles.
We license PFS-PAXUS (PAXUS) for our core fund administration and performance reporting. PAXUS is a market-leading product offering fund accounting, portfolio valuation and shareholder record keeping in one fully integrated platform.
Our customized, flexible technology platform, Clarity, produces dynamic management information as well as detailed risk and financial reports fit for any re/insurance business. Together, PAXUS and Clarity are a compelling and comprehensive technology solution for any ILS business.
Insurance Management Services
We provide a full range of insurance management and consulting services which can bring a prospective insurance or reinsurance business to reality with licensing and by supporting the commencement of underwriting. Our formation services include assistance in drafting corporate policies, assistance with financial modeling, filing of licensing applications and the selection of service providers.
SRS can provide a service team of professional staff to provide turnkey administration and accounting support and allow a seamless transition to in-house systems as clients scale.
ILS Structuring and Fund Set-up
- Review of entity constitutional documentation and liaising with legal counsel
- Assistance in drafting policies relating to ILS valuation, fee calculations, side-pocket and redemption share classes, and providing guidance on industry best practices
- Establishment of bank and custody accounts and acting as dual signatory to ensure segregation of duties
- Management of set-up process with auditors, bankers and corporate administrators
- Registration of fund for FATCA and CRS reporting
- Provision of local Independent Director/s
- Acting as Segregated Accounts and Principal Representative
ILS Valuation Services
- Review of the methodology behind the seasonality assumptions driving the valuation of collateralized reinsurance contracts to ensure this is in line with the nature of risks assumed
- Assurance that the premiums earnings are calculated in accordance with the seasonality factors at each valuation period
- Aid with establishment of trust accounts as well as calculation and verification that net premiums and contractual collateral requirements have been met
- Review of management’s assessment of losses at each valuation period by ensuring the loss reserve methodology has been consistently applied and assumptions are reasonable
- Provision of independent assessment of loss estimates, as required
Fund and Portfolio Accounting Services
- Processing of all security and cash transactions
- Independent pricing of exchange-traded securities
- Reconciliation of cash, prices and positions to broker, client, and other counterparties
- Calculation of management and performance fees
- Reconciliation and recording of expense accruals
- Preparation of a detailed NAV reporting package for each reporting period
- Preparation of draft financial statements and management of the external audit process
Investor and Transfer Agency Services
- Processing of subscriptions, redemptions and share transfers and collection of all necessary KYC materials
- Screening of investors against fund suitability requirements, and monitoring of lock up periods, side letter terms and ERISA status, as applicable
- Conducting checks of investor AML/ATF requirements and monitoring on ongoing basis
- Ensuring compliance with FATCA and CRS as well as year end filings
- Provision of compliance officer to the fund
- Maintenance of investor records and share register
- Issuance of contract and valuation notes to investors at each valuation period
- Distribution of investor notifications, as required
Collateralized Reinsurance Structures
Our Protected Cell and Segregated Account facilities provide capital markets investors with vehicles in which to participate in re/insurance programs. Investors may include, but are not limited to:
- Cedents – insurance and reinsurance companies
- ILS funds
- Hedge funds
- Pension funds
- Private institutional investors
- Private equity companies
- Financial institutions and Lloyd’s syndicates
The benefits of using a Protected Cell Company (PCC) or Segregated Account Structures (SAC) are determined by each account (or ‘cell’) being legally separate from the assets and liabilities of the general account and other segregated accounts. Each segregated account is fully collateralized to the obligations/liabilities.