Low Capital Charges
↳ Solvency II recognises material benefit for diversification into non-correlated risks, resulting in little to no incremental capital charge for credit business.
↳ Credit risk is non-correlated with traditional insurer activities in property & casualty and liability coverage areas.
↳ Non-correlation enhances insurer income stability.
Attractive Net Premiums
↳ ARC's underwriting strategy results in higher net premiums (gross premiums less losses) than can be achieved with traditional investment-grade non-payment credit strategies.
High Expected ROE
↳ Low capital charges and attractive net premiums result in high return on equity for insurers.
Predictability Of Outcome
↳ ARC's underwriting strategy is supported by years of rating data, providing strong predictability of loss through the credit cycle.
↳ ARC's activity encompasses exposure to 40+ sectors.
↳ Exposure is entirely focused on companies based in the North America, UK, Europe, Australia & New Zealand (no developing country risk).