Solvent Scheme of Arrangement

Discussion in 'SA2' started by Edward chong, Sep 27, 2016.

  1. Edward chong

    Edward chong Member

    Hi,
    I would like to ask that is solvent scheme of arrangement in the syllabus of SA 2? I come across this restructuring tool on page 81 of the recommended paper named "The management of with-profits funds in run-off" relevant to chapter 23 & 24 (surplus distribution).

    Does this only relevant to mutual insurers or also applicable to proprietor insurers?

    Thank you.
     
  2. Em Francis

    Em Francis ActEd Tutor Staff Member

    Hi
    This is not specifically covered in SA2 Core Reading.
    Schemes of arrangement can be used by insurance companies with portfolios in run-off by providing a mechanism to estimate and pay future contingent liabilities. They are effective tools and have become increasingly popular as an exit strategy from run-off business.
    So you may find the knowledge of the rationales behind them useful background reading in relation to the material on the management of the with-profits funds in run-off.

    Thanks
    Em
     

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