Business Services Industry

The RISConsulting Group Provides Risk Analysis for Rolls-Royce Asset Value Risk Insurance Program

Business Wire, Feb 23, 2001

Business Editors

BOSTON--(BUSINESS WIRE)--Feb. 23, 2001

The RISConsulting Group LLC (RISC) announced today that it provided risk analysis and structuring services to support Rolls-Royce Plc in developing and executing its recent asset value risk insurance program.

Under the insurance program, Rolls-Royce was able to reduce the company's gross exposure to asset value guarantees associated with a portfolio of aircraft by transferring the risk to a Bermudan reinsurer.

As technical advisor on the transaction, RISC developed a model that measures the size and likelihood of potential losses to a designated aircraft portfolio. Using the model, RISC assisted Rolls-Royce in structuring the transaction and transferring the risk.

To date, RISC has advised three aircraft/engine manufacturers on the development and execution of innovative risk transfer programs. RISC acted as lead technical advisor to BAE SYSTEMS on its October 1998 $3.77 billion financial risk insurance program and to SAAB on its November 2000 $1.3 billion financial risk insurance program.

RISC is a Boston-based consulting and advisory firm specializing in cutting-edge financial risk and capital management solutions for top-tier institutions worldwide.

COPYRIGHT 2001 Business Wire
COPYRIGHT 2001 Gale Group
 

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