Glossary Definition: Loss portfolio transfer (LPT) agreements are retroactive reinsurance arrangements in which an insurance provider transfers its existing, paid, or unpaid claims liabilities directly to a secondary risk bearer. Implementing a loss portfolio transfer provides immediate capital relief and completely removes volatile, long-tail liabilities from a primary company’s balance sheet, serving as an advanced restructuring tool within the broader reinsurance definition
space and altering risk exposure values evaluated during the insurance underwriting process.
Loss Portfolio Transfer
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