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Structured Financial Solutions

Understanding Sources of Capital

Banks are not the only source of capital. When loans become too costly or unavailable, deal windows tighten, uncertainty abounds, or value creation becomes more difficult, innovative organizations use insurance risk capital to solve challenges.

Hylant focuses on using both insurance and alternative capital to address these risks and facilitate transactions. We work with clients to assess complex issues and structure insurance solutions that remove obstacles, improve transactions and achieve the best outcome. Solutions might include optimizing retentions and program layers, enhancing trade receivables, investment or production tax credits, replacing letters of credit, forming or participating in insurance captives, or leveraging some combination of these elements.

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Understanding Your Risk Financing Possibilities

Insurance risk capital is an important part of a firm’s capital structure. When thought of as a future or option, the benefits of a premium, contingent liquidity, definable triggering events, and limited or non-recourse financing can solve many risk issues.

Hylant’s insurance risk capital experts use a formal methodology to help you explore innovative options for making the best use of your risk capital. Our process includes the following steps:

We work with you to define your business objectives, understand your risk philosophy and appetite, and establish performance metrics for your risk capital spend.

We identify and quantify your key insurance-related risks in a structured, disciplined and defined process.

We conduct predictive loss modeling, exposure analysis, benchmarking and loss stratification as part of quantifying your current, potential and ideal cost of risk. We create an "efficient insurance frontier" trend line for your organization, which describes the optimal balance of self-assumed risks versus market-offered premiums at multiple (potential) risk retention levels.

Based on the intelligence developed during the process, we present the following for discussion and decision-making:

  • A pro forma of expected costs
  • Insurance purchasing points at which the firm will realize its required rate of return
  • A decision-support framework that defines and prioritizes critical risk issues and addresses risk financing challenges facing your organization
  • An "efficient insurance frontier" trend line that describes the optimal balance of self-assumed risks versus market-offered premiums at multiple (potential) risk retention levels

Based on your decisions, we structure a program that protects your organization from risks, meets your financial objectives and aligns with your company’s risk-bearing ability and appetite. Hylant secures your desired coverages, expertly negotiating pricing and terms and conditions. And because your company will change over time, we continue to work with you over time to evolve your program, ensuring you continue to understand your options for making the best use of your capital.

Improving the Return on Risk Capital

How can an organization improve its return on risk capital? Read this brief story to learn more about the process of identifying opportunities to create value while protecting your assets.

Read the Case Study
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Trusted Advisors

Hylant team members are ready to advise you and help you confidently address your needs.

Kip Irle

Kip Irle

Global M&A | Transaction Solutions Leader

Casey Johnson

Casey Johnson

Managing Director - Transactional Risk

Warren Philipp Jr.

Warren Philipp Jr.

Managing Director - Transactional Risk

Michelle Molnar

Michelle Molnar

Managing Director - Due Diligence