INSURANCE WRAP
We have created a Principal Protection Insurance Wrap “PPIW” product that can be applied to a range of financial solutions and structures. This wrap is used as an extra layer of capital protection for investors, covering the full range of capital including equity, mezzanine and senior debt. The policy protects the investor, with various degrees of principal coverage ranging up to 100% of senior debt and 90% proportional principal coverage in a credit event.
These insurance policies offer investors enhanced downside protection on their cash flow and investment capital, as well as bolstering the capital-preservation characteristics of our financial products. This added layer of protection is especially important at conservative large institutions like pension funds and life insurance companies, together with family offices and private banks, that prioritise the safety of capital. The insurance policy premium typically results in savings worth multiple times the policy cost, given our ability to price deals with relatively lower capital rates and higher profit participation for our clients.
If you are interested in more information, please email us at info@loftcie.com