Insurance Wrapper

Matrix often receives enquiries about the availability of ‘insurance wrappers’. This is a catch-all phrase, generally intended to describe using an Insurance Policy to take on specific risks created by assets values or financial transactions.

While the common notion of an insurance wrap is often misunderstood, insurers still are not positioned to absorb risks typically held by equity investors, or to provide insurance coverage on volatile financial market risks.

Matrix offers several solutions that can provide valuable benefits to support certain types of structures and transactions. These solutions are described in detail within the range of Matrix Structured Insurance Solutions, and can include:

• Non-Payment Insurance
• Net Asset Value Wrapper
• Residual Value Insurance
• Parametric Insurance
• Commodity Price Risk Insurance
• Technology Performance Insurance

Using one or a combination of these tools can provide a range of benefits.

Matrix has worked with a wide range of prospective users of insurance wrappers, who approach risks from a number of different perspectives:

• Bank and non-bank lenders trying to attain specific credit profiles for their balance sheets
• Private Equity sponsors
• Private Credit Funds
• Family Offices
• Corporate ownership
• Project finance sponsors
• Owners of or Investors in equity