We understand the important role reinsurance agents fill and recognize the tremendous amount of time and attention they must devote to the many details of their daily responsibilities. We know that the more we do for them, the less they have to do – so they can focus on what they do best: serving their clients.
We place a strong value on delivering exceptional client service and personalizing our strategies to each client we serve. Because we are such a significant presence in the reinsurance industry, we are able to consolidate assets under management and offer a favorable fee structure. Prudent investment management, exceptional service, customized reporting and competitive fees: We know what reinsurance agents want – and we deliver.
The trust agreement will typically outline the allowable investments, the requirements for custodians and the duties of all parties. Our team will help you analyze the trust, select the best custodian and create a plan designed to maximize your expected return, while mitigating risk.
As funds grow within the trust, you typically have the ability to move the excess to a surplus, or “B” account. Doing so allows you to continue to defer taxation, but gain complete control of how your funds are invested. By marrying a “B” account with your trust, you may be able to increase your expected return.
Most trust agreements have similar investment covenants and restrictions. These programs are designed so insurers may transfer portions of risk portfolios to other parties by some form of agreement in order to reduce the likelihood of having to pay a large obligation resulting from an insurance claim. All of the investment income is kept by the reinsurance company, so the ceding insurance company may be better preserved by a conservative investment strategy.
By our team actively managing the investments in the trust, we will look to find market inefficiencies that should allow for an enhanced overall return to the reinsurance company while maintaining the conservative and approved investment policy in accordance with the desire of the trust agreement.
To find quality investments appropriate to your situation, we consider a broad universe of investments, including stocks, bonds, mutual funds, ETFs, annuities, REITs and alternatives. To make our specific recommendations, we utilize both quantitative and qualitative analysis, along with the extensive investment research and due diligence of Raymond James, one of America’s largest independent financial services firms.
A reinsurance agent represents several different product lines and works with multiple companies, including a primary vehicle service contract company, a high-mileage service contract company, and other companies for tire and wheel products, and paint and fabric. He had a hard time keeping up with all the details, and is dissatisfied with the service, reporting and fee structure he and his client was receiving.
What we would do for him:
First, we would advise him that by having accounts in different places, the fees he was paying were too high. We would recommend that we manage the assets of all the trust accounts and then meet with other administrators to package them together to gain fee-pricing efficiency. We would create custom reporting to address his desire to see precisely and clearly how the accounts were doing. Above all, to create an extraordinary client experience, we would provide a high level of personal service by reaching out on a regular basis.
This investment profile is hypothetical and not indicative of any specific situations or clients. It is presented only as an example and not intended as investment advice. Please note, changes in tax laws or regulations may occur at any time and could substantially impact your situation. Raymond James financial advisors do not render advice on tax or legal matters. You should discuss any tax or legal matters with the appropriate professional.