When a company enters run-off there are a wealth of options open to it. These can include conventional run-off, commutation, scheme, sale and various combinations thereof.
How to determine which is the appropriate strategy and the timing of this strategy is a very complex problem which can only be properly answered with a model of the assets and liabilities of the entity.
Such a model should be able to indicate the likely risk premium which would be required for a portfolio transfer and compare this to the risk premium typically required for the commutation of a portfolio.
EMB have the experience of all of these various forms of exit strategy and the necessary experience of capital modelling techniques to assist clients in designing an optimal exit strategy for their portfolio.
