Ruark Consulting, LLC (RCL) provides reinsurance intermediary services for the annuity products market.

We have excellent relationships with domestic U.S. and off-shore reinsurers.  We work with reinsurers to create reinsurance capacity for both new and existing products.  Our state-of-the-art risk analysis techniques assist both direct writers and reinsurers in establishing sound risk transfer mechanisms.

Many of our programs are tailor made to meet the unique needs of individual companies. Our focus has been on equity-related risks but we have also designed programs to transfer longevity risks and provide capital relief.

RCL assists its clients in both obtaining and administering reinsurance treaties. The table below describes the services RCL provides its broker clients:

Reinsurance Brokering

- Identify reinsurers to approach.

- Prepare reinsurance proposal, uniquely tailored to client’s objectives.

- Prepare risk assessment for reinsurers.

- Negotiate treaty terms

Seriatim Data

- Review monthly seriatim data for reasonableness and surface any items of concern.

- Distribute data to reinsurers.

- Maintain historical database.

Monthly Reporting

- Prepare monthly statement and distribute to client and the reinsurers.

- The statement includes the premium due, updated treaty limits, and a summary of reinsured business.

Annual Review of Reinsurance

- Prepare experience exhibits.

- Develop renewal strategy.

- Facilitate review of results and discussion of reinsurance program between client and reinsurers.

Periodic Book of Business Reviews

- Compare actual demographics and other metrics to assumptions made in RFP.

- Analyze risk profile and changes since last review.

Reinsurer Ratings and GAAP Surplus

- Monitor the A.M. Best Claims Paying Rating of each reinsurer and report any change to client.

- Track the U.S. GAAP surplus position of each reinsurer.

Design & Risk Management

Variable Annuties

RCL specializes in the design and risk management of ancillary product features such as Guaranteed Minimum Death Benefits, Earnings Enhancement Benefits, Guaranteed Minimum Income Benefits, Guaranteed Minimum Withdrawal Benefits, Guaranteed Minimum Account Value Benefits, and Guaranteed Payout Annuity Floors.

Many of our unique reinsurance programs are tailored specifically to the variable market.   One example is the Deferred Stop Loss program (DSL) for which a patent is pending.  This program recognizes the long-term nature of the guaranteed minimum death benefits, the inherent volatility of the equity markets, and the need for direct writers to avoid large fluctuations in earnings.

RCL has also designed programs that reinsure two different guaranteed benefits within one package.  In these instances, the two benefits react differently to changes in stock market performance.  This results in lower reinsurance premiums for the package than for the two products individually reinsured.

Fixed Annuities

Fixed annuities retain a significant market share, regardless of the external interest rate environment.  Many companies maintain a position in this market but prefer to modify the risk profile.  RCL has developed reinsurance strategies to implement risk sharing that provide capital relief either with or without sharing deferred acquisition costs.

Equity Indexed Annuities

The equity indexed annuity marketplace is rapidly growing, increasing market share in leaps and bounds.  A company wishing to enter this marketplace must develop unique skills and capabilities for product management and administration.  RCL is uniquely positioned to provide solutions to our clients, including:

- Reinsurance approach for the funding of equity participation as an alternative to establishing a capital markets hedging program

- Availability of administrative outsourcing

- Existing relationships with marketing and distribution consultants to provide a coordinated, multi-disciplinary approach for entry into the EIA marketplace.