Reinsurance counterparty risk monitoring that sees a downgrade or a collateral shortfall the day it happens
Downgrades and collateral shortfalls seen the day they happen.
See one case, screen by screen ↓Watching the credit risk a carrier holds on every reinsurer on its panel: ratings and outlooks, collateral posted against recoverables, letters of credit and their expiries, overdue balances and concentration. This solution reads all of it every night and ranks the panel on one watchlist, so a change is seen the day it happens rather than at the next quarterly security committee.
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Ceded recoverables are a credit exposure to every reinsurer on the panel. Today the security team watches that exposure in spreadsheets refreshed before each security committee: ratings copied from agency sites, letters of credit and trusts kept by treasury, recoverables aged by ceded accounting. Between committees, a downgrade or a negative outlook can sit unseen for weeks.
The expensive surprises are quiet ones. A bank's notice of non-extension lands in a treasury mailbox and is never logged. A trust statement comes in short after a valuation. A paid recoverable passes 90 days in a dispute. Each is found when the quarter is closed — after it has already moved the provision for reinsurance on Schedule F, which is charged straight to surplus.
Estimated split for one quarterly review of a 34-reinsurer panel, by hand and with the solution.
Six agents read ratings, news, bank notices and recoverables every night; the credit controller decides and the committee approves.
Monday 12 October 2026, Ashcombe Mutual: 34 reinsurers, $612.8M of recoverables. Here is what the overnight run found, and what the credit controller did with it, screen by screen in the working solution.
The rating watcher reads 6 rating actions and outlooks, the collateral checker 3 bank notices and 9 trust statements, the letter of credit keeper checks 9 letters of credit against their expiry and notice dates, the news reader reads 41 items, the recoverables ager ages $612.8M. As each one reports, the rows re-rank — at this point Corvane Re still sits at #7 with a score of 34.
Rosa opens the Panel watch. Corvane Re SPC, Cayman Islands, unauthorised, has climbed six places to #1 with a watch score of 91, ahead of Saltire Casualty Re, downgraded A → A- on 8 Oct. Each row shows why: the 24-month rating line, a collateral gauge, a 120-day letter-of-credit strip and the share of recoverables.
“Letter of credit ends in 18 days · bank notice 28 Sep · Rating at risk · reserve charge and strategic review · Collateral 101% → 58% on 30 Oct”
Corvane owes $41.2M of recoverables, 6.7% of the panel. Collateral required is $42.6M, recoverables plus $1.4M of unearned premium; held today is $43.1M, 101% — letter of credit BBT-SB-24-0917 for $18.5M plus a trust at Greyfield worth $24.6M. The run log shows how it was found: Ballantyne Bank's notice of non-extension, received 1 Oct and not logged.
One switch shows the collateral if the letter of credit ends on 30 Oct: the trust alone, $24.6M, 58% of the $42.6M required. That leaves an $18.0M gap — and, unchanged at 31 Dec, an $18.0M provision charged to surplus.
The collateral checker never draws on a letter of credit and never moves trust assets.
Corvane Holdings' Q3 trading update of Fri 9 Oct announced reserve strengthening of $186 million and a strategic review “including a possible sale or orderly run-off”. The news reader measures the charge against $1.33B of equity — 14%, above the library threshold of 10% — and matches it to the signal library: 9 of 12 comparable cases saw an agency action within 45 days. The rating is still A- stable.
The news reader never treats news as a rating, and raises no alert from an unsourced item.
Nine letters of credit, $66.4M, four issuing banks; seven end in the next 120 days. Corvane's notice is checked against the rule — 32 days given, at least 30 required. The calendar also shows the next one to chase: Quarry Hill's $6.5M from Tollgate National Bank, whose notice window closes 23 Oct, from a bank cut to BBB+ on 30 Sep and still qualified.
Across the 12 reinsurers that post collateral, $125.8M is required and $128.6M held. If nothing is done, the projected provision for reinsurance at 31 Dec is $18.9M: Corvane $18.0M, Fennick Re's $0.3M trust shortfall and 20% of Halvard Re's $3.1M overdue 94 days. Once Corvane is secured, $0.9M. A what-if shows Halvard falling to Secure-4: required $14.8M against $6.1M held, a further $8.7M gap.
Replacement requested today; security committee Wed 21 Oct; replacement deadline Fri 23 Oct; if none, draw the full $18.5M into the Greyfield trust on Tue 27 Oct, three business days before the letter ends on Fri 30 Oct. The request to Corvane's CFO, Gareth Pryce, cites Article 18 of the treaties; the draw certificate is drafted beside it.
The letter of credit keeper drafts; it never sends or presents anything without the credit controller.
Rosa sends the request to Gareth Pryce, copying the broker, Lena Whitcombe of Halloran Re Partners, and approves the plan. Martin Feld, the treasurer, co-signs the draw certificate — held until Tue 27 Oct. Helen Marsh, the CFO, is informed and the item is on the 21 Oct agenda.
“Co-signed by Martin Feld · the draw is held until Tue 27 Oct”
The committee pack writer drafts the pack for 21 Oct from the watchlist, the plans and 214 sources, every figure linked to its source. Three decisions are asked: Corvane on watch with no new or renewed business at 1/1 2027; Saltire kept but capped at its current 7.5% line; Brightwater's 2027 share cut by 2 points to stay under 12.5% of recoverables.
The pack writer never records a vote — the committee decides.
The same lapsing letter of credit, seen by the five people who carry it — what their quarter looked like, and what it looks like now.
Six agents read ratings, news, bank notices and recoverables every night; the credit controller decides and the committee approves.
Reads rating actions, outlooks and reviews every night and keeps a 24-month rating history for each reinsurer.
Reads trade press, company releases and regulator notices, highlights the phrases that matter, measures them against equity and turns them into watch alerts before a rating changes.
Matches letters of credit, trusts and funds withheld to the collateral each reinsurer must post, and reads bank notices in the treasury mailbox.
Keeps the calendar of letters of credit, evergreen terms, notice periods and issuing-bank checks; drafts replacement requests and draw certificates.
Ages paid recoverables, flags slow payers and computes concentration by reinsurer group.
Writes the security committee pack from the watchlist, the plans and the signals, with every figure linked to its source.
Decides; treasurer co-signs draws. The agents propose; a named person decides.
Ask about a reinsurer, a letter of credit, collateral or a signal — every answer cites its source.
Why is Corvane Re at the top of the watch today?
Two things landed overnight. Ballantyne Bank will not extend Corvane's $18.5M letter of credit past Fri 30 Oct — 18 days away. Without it, collateral falls from $43.1M to $24.6M against $42.6M required: 58%. And Corvane's Q3 update announced a $186M reserve charge with a strategic review, which the signal library reads as rating at risk. Score 34 → 91, rank #7 → #1.
What happens at year end if the Corvane letter of credit lapses?
Corvane is unauthorised, so only secured recoverables earn credit. With the trust alone, $18.0M of $42.6M is unsecured and is provided for at 100% on Schedule F, straight out of surplus. With Fennick and Halvard the projected provision is $18.9M; once Corvane is secured it is $0.9M.
Which letters of credit end in the next 60 days?
Two. Corvane's BBT-SB-24-0917, $18.5M, ends 30 Oct and is not extending. Quarry Hill's TNB-26-1182, $6.5M, ends 22 Nov on evergreen terms — the bank's notice window closes 23 Oct, and Tollgate was cut to BBB+ on 30 Sep, still qualified.
Is any reinsurer near the concentration limit?
Brightwater Reinsurance holds $88.2M, 14.4% of $612.8M recoverables, against the 15% limit and above the 12.5% alert. The committee pack asks to reduce its 2027 share by 2 points. Northmere is next at 10.3%.
13 screens from the working solution, on its sample data. Pick one to see it large.
What the watch looks for, when it warns and who decides — all settings, changed as a draft for the chief risk officer to approve.
| Setting | Default | Choose from |
|---|---|---|
| Minimum rating for new business | A- (AM Best) · A- (S&P) | Your security policy |
| Put on watch when | Outlook negative · under review · rating at risk | Your watch triggers |
| Letter-of-credit warning windows | 90 · 45 · 20 days | Your windows |
| Draw trigger | 3 business days before expiry, no replacement | Per your treaty security clause |
| Certified reinsurer collateral rates | Secure-1 0% · Secure-2 10% · Secure-3 20% · Secure-4 50% · Secure-5 75% · Vulnerable-6 100% | Model Regulation #786 rates |
| Overdue paid recoverables | Watch at 60 days · provision at 90 | Your ageing thresholds |
| Concentration limit per reinsurer group | 15% of recoverables · alert at 12.5% | Your risk appetite |
| Who decides | Credit controller · treasurer for draws · committee for the list | Any named approvers |
Every figure is labelled: a target the solution is built to, an estimate, a typical published result, or a proven one.
“demo” = seen in the working solution, on its sample panel data · “target” = the design goal, measured in the live solution · “estimated” = our estimate · “typical” = published rules (NAIC Credit for Reinsurance Model Law #785 and Model Regulation #786 — 100% collateral for unauthorised reinsurers; letters of credit with at least 30 days' notice of non-extension; NAIC Annual Statement Schedule F). People, companies and banks named on this page are fictional — characters and sample data in the working solution.
Watching the credit risk a carrier holds on every reinsurer on its panel: ratings and outlooks, collateral posted against recoverables, letters of credit and their expiries, overdue balances and concentration. This solution reads all of it every night and ranks the panel on one watchlist, so a change is seen the day it happens rather than at the next quarterly security committee.
The collateral checker reads bank notices in the treasury mailbox and matches them to the letters of credit on file; the letter of credit keeper holds every expiry, evergreen term and notice period. When a notice of non-extension arrives, the reinsurer moves up the watch, the collateral gap is measured and a replacement request and draw certificate are drafted for the credit controller.
Yes. The news reader reads trade press, company releases and regulator notices, highlights phrases such as a reserve charge or a strategic review, measures them against the company's equity and matches them to your signal library. It raises “rating at risk” with its reasons — but it never treats news as a rating, and never raises an alert from an unsourced item.
It projects it. The collateral checker computes required collateral by status and rating — 100% for unauthorised reinsurers, by Secure rating for certified ones — and adds 20% of paid recoverables more than 90 days overdue. You see the projected provision at the next statement date and can export the Schedule F working.
No. The agents never draw, never move trust assets, never write to the ledger, never change the approved list and never contact a reinsurer. The credit controller decides actions, the treasurer co-signs any draw, and the security committee approves the approved list.
The committee pack writer drafts it from the watchlist, the action plans and the signals: what changed since the last committee, the decisions asked with a recommendation, the watchlist, collateral and letters of credit, signals and the approved list. Every figure links to its source, and it never records a vote.
Yes. The minimum rating for new business, watch triggers, letter-of-credit warning windows and draw trigger, certified collateral rates, overdue thresholds, the concentration limit, the sources read and who decides are all settings. Changes are saved as a draft for the chief risk officer to approve.
The Agentic Solution Engine builds and deploys it from your requirements — your security policy, panel list, letters of credit and trust records and a sample of your recoverables ledger — and it goes live once every quality gate has passed. We will walk you through it on your own panel first.
A checked renewal submission in days, not weeks, every figure traced.
1-min demoTreaty Underwriting WorkbenchA first view of every program in hours, not days.
1-min demoTreaty Wording ComparisonEvery changed clause found before signing, not when a claim tests it.
1-min demoWe'll run Reinsurance Counterparty Risk Monitoring on a sample of your own panel, collateral and recoverables.