Citadel Risk can assist – or in fact remove completely – a variety of debt scenarios, both solvent and insolvent.
- We can purchase problem debts from you by taking an assignment of the rights to current and future collection under the policies. We will consider single-policy transactions, entire books of business, single reinsurers or even whole portfolios.
- Dealing with smaller debts you no longer have the resources to manage cost-effectively.
- The time-consuming distractions of dealing with reinsurers in particular territories.
- Insolvent debts that will take years to realise and are inadmissible assets.
- Citadel Risk is also very willing to work with you and share on the “upside” of any transaction. This could take the form of a cap and collar style arrangement where all recoveries past a certain cap are shared between yourself and Citadel Risk.
Benefit of selling your debt:
- Refocus on core business activities
- Reduce administration costs
- Increase liquidity by accelerating cash flow
- Achieve certainty on (re)insurance asset values
- Solve the growing problem of collecting aged debt
- Improve the balance sheet by releasing bad debt provisions”, “strapline”: “A finality solution for your aged debts”.