Case Studies

Large Multinational Effectively Manages Assignee Risk

In 2001, XN Financial secured the international moving, storage and personal liability program a global enterprise generating over 14 billion in annual revenue. The program comprised 2,000 international moves a year supporting a group of over 9,000 transferee households located in over 100 countries. Acting as a Managing General Agent, XN Financial deployed Lloyd’s of London insurance capacity and saved the company in excess of USD $1,000,000 in premium during the first year of the program. We have since successfully managed over 1,500 international moving and storage claims for employees and families around the world, in multiple currencies and languages.

XN Financial’s detailed management information reports alerted the company to the fact that the company was using over 80 movers worldwide. Armed for the first time with this critical data, the company was able to proactively leverage its worldwide buying power to better manage its relocation vendor portfolio. The resulting rationalization and consolidation gave rise to renegotiating terms with two moving provider, saving the company over USD $3,000,000 a year.

Moreover, through XN Financial’s premium and claims reporting system, the client became comfortable with the risk exposure and established a risk sharing arrangement with XN Financial’s Lloyd’s underwriter. Today, XN Financial manages all financial aspects of premium and claims reporting for a subscription program with Lloyd’s of London providing the license carrier worldwide (51% risk participation) and the offshore captive reinsurers for the company assuming 49% of the exposure. This mechanism allowed the company to repatriate the underwriting profit offshore on a tax deferred basis.