Evaluating Risk
One of the overlooked risks is the uncertainty of recovery and the inherent value of subrogation and collection assets. Monetizing your subrogation assets essentially transfers this risk to a third party by the selling of your recovery rights.
An insurance entity deals with several types of risk:
- Credit Risk
- Insurable Events
- Asset Liability (interest rates)
- Operational (expense guarantees)
LCS can evaluate your portfolio to determine a purchase price related to the Anticipated Recovery Value (ARV).