Case Study: Luxury Brands - EMEA - Fronting

Case Study: Background

Headquartered in EMEA, this world leader in apparel and accessories manages a group of powerful brands. Focused on a single business, the group designs, manufactures and markets luxury consumer products. In order to access its reinsurance captive, the company was looking for a long term fronting partner able to offer flexibility with the wordings of the policies in order to match the group's specific coverage needs (e.g. brand protection) and who could offer competitive fronting costs with no collaterals (e.g. LoC) required.

Case Study: Approach

The solution was to select a dedicated fronting cell in White Rock, which is an Aon-owned company that has been specifically established to assist clients who need licensed insurance paper in the European Economic Area (EEA) to access reinsurance markets or captives. White Rock is licensed to write all non-life business within the EEA under Freedom of Services.

Case Study: Results

The dedicated fronting cell in White Rock allowed the company the use of a fronting tool independent from the market securing long term access to the Group's reinsurance captive. The success of the arrangement has led to additional fronting of three lines of business for the company and plans are in place to add two further programmes to further optimise program management and reduce total cost of risk.