Reserving actuary services for Lloyd's syndicates, insurers and captives

Why reserving matters

Lloyd's syndicates and insurers can see significant claims activity across all lines of business. Making sure there are sufficient reserves and cash flows to meet claims is essential to a company's reputation, and because changes in the reserves held feed directly into results, reserving has a direct impact on profitability.

A reserving analysis helps you understand the potential value of your future liabilities, your ability to meet those future outgoings and what they mean for profitability. In many domiciles and jurisdictions, a loss reserving opinion is also a legal requirement.

Perrenial is a London general insurance (non-life) actuarial consultancy. Our reserving work is led by Asad Khalil FIA, Managing Director and founder, who has significant experience across reserving, technical pricing and risk financing.

Second-line reserve peer reviews

For Lloyd's syndicates and insurers, we provide second-line peer reviews of reserves for Chief Risk Officers (CROs) and reserving managers. We can review reserve provisions produced by your internal team or by external providers, giving the second line an independent view to challenge and support the numbers.

Reserving and funding for captives, mutuals and pools

Captive insurers, mutuals and pools are under increasing pressure to achieve efficiencies and to demonstrate proper stewardship of funds to stakeholders and their parent company. One way captives can drive efficiency is by self-insuring, or retaining, more of their risks: taking larger deductibles on their insurance policies so that insurance responds at higher levels.

To make sure funds are available to pay for these retained costs, many corporations and public sector entities make annual provisions in their accounts or set up a ring-fenced self-insurance fund. Perrenial has significant experience in helping captive insurers understand the funding requirements that arise from self-insurance, so that adequate funding is in place to meet the cost of self-insured claims when they fall due.

Loss Reserving Opinions for captive insurers

We provide Loss Reserving Specialist Opinions (LRSOs) and Statements of Actuarial Opinion (SAOs) for captive insurers domiciled in a number of jurisdictions, including:

If you are considering forming a captive, see our captive actuarial services page for feasibility studies and wider support.

Key benefits

Reserving alongside pricing and programme design

Reserving rarely sits on its own. The development patterns and loss projections behind a reserve review also inform technical pricing and decisions about how much risk to retain through (re)insurance programme design optimisation. Working with one consultancy across these areas helps keep assumptions consistent.