A review of the commutation process and procedures for a major US ceding company was requested, including interviews with all staff involved in the process (accounting, claims, actuarial, collections and operations). An additional review of the internal written guidelines and policies was also completed. Recommendations made by Alan Gray LLC resulted in a strategic collection effort and the implementation of a proactive strategy used to identify financially impaired reinsurers. This directly led to the preservation and maximization of the value of reinsurance assets.

Reconstruction of the accounting and billing records for a property and casualty company’s largest ceded program was undertaken. Reporting to reinsurers had ceased at the time the company was placed in liquidation and no billing information was sent to reinsurers for a three year period. After reviewing the contracts, Alan Gray LLC determined the proper activity that should have been ceded to the various treaty layers. The accounting entries were adjusted and records were developed for the entire book of business, covering a five year period. In addition, detailed supporting documentation was developed and staff participated in the presentation to the largest reinsurer of the program, resulting in a collection in excess of $7,000,000 prior to the year-end.