Billingham ReSolutions, Incorporated

Katherine L. Billingham, J.D., C.P.C.U

In any business, credit control and collection of balances is often vital to the overall success of the company. To maximize cash flow, capital and surplus and investment returns, a reduction in accounts receivables and other forms of debt is of primary importance. Debt recovery also requires considerable experience, especially in a climate of mergers, acquisitions, and dissolutions of Insurers and brokers. The following are some of the benefits our clients enjoy as a result of our Recovery Services:

 Collection of Debt

It is often difficult to know exactly what companies owe and how much is owed, especially when reliance is placed on brokers. We can assist in the reconciliation, resolution and collection of amounts due from reinsurers, brokers, cedants, and others on a cost effective basis.  The Firm can also assist in the reduction of the demand for and the improper draw of letters of credit.

Recovery of Old Balances

Insurance and reinsurance operations often carry significant recoverable balances on their books that are significantly aged and/or relate to companies with doubtful security, due to either geographical or financial reasons. We can assist in identifying such balances and negotiating a resolution of the debt.

Commutations

Commutations are an excellent means of resolving such issues as surplus enhancement, poor security, and reduction of inward exposures and administrative expenses. The Firm has considerable experience in all aspects of commutations and has achieved substantial savings for clients.

Letters of Credit

Many reinsurers have experienced issues concerning the lack of reduction, or of a continuing need for maintaining, certain letters of credit, or in some cases, the improper draw on a letter of credit.  ICARMS is knowledgeable in this burgeoning area of issues and can facilitate the appropriate resolution to the satisfaction of our clients.

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Last modified: 04/08/04