Core capital optimization through insurance rating transfert on ongoing business
The use of insurance cover for capital mitigation is not only applicable to new or prospective underlying commercial lendings.
It is also applicable for already running and active funding.
Leasing, multy year commercial based warranties, sureties can be sided with insurance covers based on the Easybond®program,
allowing the customer (bank) to limit the insolvency risk related to the repayment of the loan, but also to apply, where feasible, for the mitigation of the reserve capital under the Basle II / III protocol.
This application of the Easybond®program certainly involves a cost to the bank, which is not transferable or anticipated and calculated at the origin with the customer.
However, it gives the bank the ability to improve the risk profile related to the customer's loan or towards a particular component, geographical or thematic or temporal, of the medium and long-term exposure portfolio. The valuation is made not on a portfolio basis but on a single risk basis.
At the same time, the reserve capital parameters can be recalculated and optimized, or by improving them or by allowing through the new capital parameter so achieved to generate additional business.
Easybond®core cap optimizer is not a specific insurance product but an original approach of the Easybond® system to the planning of our client banks' financial basis use
The economic values and technical conditions indicated, the description of the covers and the policy details are purely indicative and non-binding. The insurance company and the subscription agency reserve the right to assess and decide on the assumption of risks and the emission of policies.