It is imperative that professionals who serve the needs of the insurance and reinsurance industries be well versed in the governing accounting principles, as well as the regulatory process. The professionals at Veris are uniquely qualified to meet those needs.
When consulting with clients, our advice comes from having been actively involved in the standard-setting process by serving on committees of the American Institute of CPAs such as the Insurance Companies Committee, Accounting Standards Executive Committee, Insurance Experts Panel, AICPA/NAIC Working Group Task Force.
Our professionals have served as chairpersons or members of task forces, including those that have issued the authoritative guidance dealing with the audit of property and casualty insurance company loss reserves and the accounting for reinsurance arrangements that do not transfer risk.
The nature of the expert services we have provided cover a wide array of topics and issues such as:
We have evaluated when and to what extent entities were insolvent in connection with many of the largest insurance company failures in U.S. history, including:
Veris also provides expert assistance and testimony in circumstances involving both domestic and international reinsurance disputes, including:
- Provided significant assistance, including testifying before the Independent Arbitrator in London on behalf of a major Swiss insurance company in what is believed to be the world’s largest “baseball arbitration” with $900 million at stake. A substantial amount of that assistance was in connection with valuing claim liabilities and the economic valuation of reinsurance amounts in particularly complex circumstances. The insurance company won the arbitration which arose out of the sale of its international insurance and reinsurance business that provided total risk management for large national and multi-national corporations around the globe.
- Engaged by counsel for several different State Insurance Departments to assist in evaluation of compliance by auditors with generally accepted auditing standards and assessment of whether financial statements were prepared in accordance with statutory accounting practices. Issues included loss reserve adequacy, reinsurance recoverable and internal control deficiencies. Work included review of workpapers, coordination and review of work of consulting actuaries and preparation of deposition outlines. Additional services included preparation of pro forma financial statements, deposition assistance and damages calculations. Expert testimony provided.
- Engaged by liquidators of several different failed life insurance companies to investigate causes of insolvency, perform liability, causation and damages analyses related to directors, officers, accountants, actuaries and other consultants. Work has included review of accountants’ workpapers, pro forma financial statements and damages calculations. Expert testimony provided.
- Engaged by various counsel on behalf of multiple property casualty companies to assist in evaluating their financial reporting related to various finite risk and other reinsurance contracts. Services included review of transactions, conducting interviews of company personnel and presentations to the Board and Federal regulators.
- Engaged by Bermuda liquidators to assist in evaluation of compliance by auditors with generally accepted auditing standards and assessment of whether financial statements were prepared in accordance with appropriate accounting practices. Issues included loss reserve adequacy, reinsurance assets and internal control deficiencies.
- Engaged on behalf of an international insurance company regarding a dispute arising from claims of fraudulent transfer and involving complex business transactions including evaluation of a billion dollar reinsurance agreement, issues of asset valuation and goodwill and impairment thereof. Services included deposition and trial testimony.
- Engaged by a global insurance company related to allegations of breach of representations and warranties arising from the sale by the insurance company of its Latin American insurance division and its subsidiaries to another global insurance company.
- Engaged in a litigation involving a contested reinsurance transaction between a financial guaranty insurance provider and one of its principal owners. Veris addressed issues of substance over form and underlying economics in addition to quantifying the balance sheet effect of the transaction which required an analysis and valuation of assets for which no current market existed, an evaluation of the fundamental value of those assets and a review of rating agencies valuation, analysis and outlook regarding these investments.
- Defense of claims made by an international insurance holding company in respect of various analysts and hedge fund activities, including evaluation of loss experience, reinsurance practices and operational losses. Deposition testimony provided.
- Determination of losses incurred by a major health insurer and appropriate recoveries to be made against its reinsurer. Arbitration testimony provided.
- Defense of claims made by acquirer of major Puerto Rican Medicare provider and evaluation of claims practices, loss reserves and premium processing.
- Evaluation of results of a large property casualty underwriting pool with complex reinsurance and long-tail liability issues over its 40+ year lifespan in connection with a dispute between the pool manager and pool participants.
- Evaluation of claims and damages related to London market spiral involving personal accident losses. Deposition and trial testimony provided.
- Engaged to assess the damages suffered in connection with the liquidation of a property/casualty insurance company. Veris analyzed and reconstructed millions of dollars of transfers of funds through multiple entities and for multiple alleged purposes in connection with allegations of post-acquisition looting by civil and criminal defendants. In addition, Veris analyzed the investment portfolio to determine what the portfolio could have been expected to yield based on a reallocation of asset classes and earning rates given appropriate investment decisions. Deposition testimony provided.