Sidecars - Services Provided

Through a combination of insurance management and advisory skills, the Horseshoe Group is able to render a broad array of services and effectively deliver superior insurance management to our clients, which is second to none in Bermuda.

As with all the clients we manage, we take an active role in the management of the company and are on the look out to protect the best interest of investors.

Our involvement with sidecars encompasses a variety of services including but not limited to the following:

Advising Potential Investors

Apply our Sidecar Evaluation Framework to each potential sidecar investment
Assist investors with their decision-making process
Review cash-flow models and assumptions
Conduct due diligence of the prospective ceding company
For more details, please follow the link to our Insurance Advisory division

Set-Up

Recommend local service providers
Review business plan to be submitted to the regulatory authorities
Represent the prospective company during the insurance licensing admission process
Act on behalf of the client as ‘Insurance Manager’ and ‘Principal Representative’ both regulated functions under the Insurance Act 1978 in Bermuda.

Accounting Services

The Horseshoe Group uses a recognized suite of accounting software to provide its core accounting and financial reporting services. We tailor our working arrangements and reporting to individual clients’ needs. We do not use templated reporting systems that require the client to fit our preferences.
Maintain financial records
Prepare monthly/quarterly management financial accounts
Prepare annual shareholder financial statements
Prepare and file annual Statutory Financial Return and Statutory Financial Statements
Liaise with auditors, actuaries and regulatory authorities in connection with annual audited financial statements

Insurance Administration

Receive, review and process premium and loss advices/payments
Liaise with insurance/reinsurance counterparties to obtain information on a timely basis and follow up on any anomalies
Determine appropriate accounting entries to reflect insurance and reinsurance transactions
Apply Loss Reserving Standards as directed by the company’s Board of Directors
Liaise with actuarial and underwriting staff/consultants and loss reserve specialist as required particularly with regards to monitoring reserve development and PML
Provide quarterly analysis of underwriting activities as required

Treasury

Monitor collateral requirements and establish and adjust funding as required
Obtain/process periodic investment reports for company reporting purposes
Prepare and review cash flow projections/requirements
Review the company’s investment administrator’s periodic reports and monitor compliance with investment guidelines and parameters
Execution of cash management orders issued by the company’s investment administrator

Company Administration

Maintain in Bermuda relevant insurance records, books of account, and financial statements and records
Maintain the company’s chequebooks, receive bank statements and maintain banking records, attend to the company’s banking transactions and liaise as necessary with bank representatives
Ensure that all payments and transfers are executed in compliance with signatory authorities established by the company.
Execution of cash management orders issued by the company’s investment administrator in relation with its investment portfolios and working capital
Liaise with third party service providers as required
Ensure timely distribution of capital return and dividends payments to shareholders and obtain necessary regulatory authorizations
Assistance and preparation of reports to regulatory authority (Bermuda Monetary Authority)

Principal Representative and Directorship

Provide Bermuda resident director to sit on the Board of Directors of the sidecar
Subject to approval of the Bermuda Monetary Authority (BMA), act as Principal Representative for the company
In consultation with the Board of Directors and Bermuda counsel, assist in organization of quarterly board meetings and annual shareholder meeting

Oversight of Other Service Providers

Horseshoe will oversee the activities of other service providers/individuals that render services to the company. Horseshoe will also facilitate access to the records of the company and assist with such access as is reasonably required.

Auditors
Liaise with the company’s external auditors as required in respect to an annual audit of the company’s financial statements.
Lawyers
Liaise with the company’s lawyers to ensure that all forms and documents are duly completed, executed and, if necessary, filed with regulatory authorities.
Trustees
Liaise with trustees appointed in connection with the provision of any collateral as required under the terms of any (re)insurance agreement entered into by the company, ensuring timely adjustment of collateral levels as required
Banks
Maintain and operate, in the name of the company, bank accounts with any bank approved by the board of directors and appropriate regulatory authority in Bermuda.

Loss Reserve Evaluation

While sidecars no longer need to have their loss reserves certified by an approved Loss Reserve Specialist, the investors may wish to have an annual evaluation of the loss reserves.
We are able to offer this service through our Insurance Advisory division

Claims Consulting

Conduct claims audits on behalf of the sidecar
Advise with commutation
We are able to offer this service through our Insurance Advisory division