Carey G. Child
Norton Rose Fulbright US LLP
Carey G. ChildvCard
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Carey Child focuses on developing innovative products and risk-transfer solutions for insurance, reinsurance, and financial-market clients. He also advises clients on the use of insurance and other risk-transfer options to achieve business and transactional goals, as well as the insurance-regulatory implications of such products and transactions.
Development of Risk-Transfer Solutions
- The formation and private-placement capitalization and reinsurance agreements for the first reinsurance sidecar capitalized post-Katrina, which was also the first to employ leverage, and the first Moody's-rated sidecar offering.
- A first-of-its-kind catastrophe bond program covering workers' compensation fund's exposure to earthquake risk.
- Reinsurance and risk-transfer mechanisms for a hybrid reinsurance sidecar.
- The use of a segregated-cell structure in connection with the issuance of insurance-linked securities to address tail-risk allocation between investors that wish to remain on-risk, and those that desire an earlier termination of their exposure.
- Development of a dual-trigger risk-transfer facility utilizing reinsurance and credit default swaps to protect participants in the Florida Hurricane Catastrophe Fund ("FHCF") from credit risk and the risk of delayed payment in the event one or more hurricanes exceeded the prompt payment and bonding capacity of the FHCF.
- Insurance products and/or derivative alternatives to address specialized weather, crop, commodity, and financial-market risks.
- Development of a new casualty-clash reinsurance product for an international reinsurer.
- Design of a political-risk insurance and reinsurance facility focused on the Middle East and Africa, and involving both public and private insurers, as well as capital-market participants.
Use of Risk-Transfer Mechanisms to Accomplish Business and Transactional Objectives; Insurance-Regulatory Implications
- The use of representations and warranty insurance to facilitate acquisitions and other corporate transactions.
- The use of tax treatment insurance to facilitate structured financing dependent upon a specific tax treatment.
- Portfolio-transfer reinsurance and other de-risking mechanisms to facilitate the disposal of business lines, or the acquisition of companies.
- Retrocession of pension annuities to facilitate solvent run-off of reinsurer/retrocedent and the re-investment of collateral assets.
- Inter-company pooling arrangements.
- Captive and risk-retention-group reinsurance arrangements.
- Program, reinsurance and retrocession agreements for use in large-deductible and captive workers-compensation programs.
- Due diligence and risk transfer issues in the acquisition of a major life insurer by a hedge fund.
- For the internal audit function of a global reinsurer, a long-term reinsurance contract wording improvement program, involving the analysis of dozens of reinsurance contracts, with a focus on catastrophe and specialty reinsurance.
- Advised Fortune 500 financial services group regarding reporting requirements under Insurance Producer Licensing Act in all 50 states upon for-cause termination of licensed employee.
- Conducted due diligence, and regulatory analysis, including regarding notice / approval requirements in connection with acquisition of entities licensed by insurance regulators in multiple U.S. jurisdictions.
For clients with complex insurance, reinsurance, and risk-transfer disputes, Mr. Child provides strategic advice regarding the development of claims and defenses under the particular contract wordings and facts, and, where appropriate, in negotiating and documenting settlements and commutations.
JD, magna cum laude, Georgetown University Law Center, 1992
BA, cum laude, University of Utah, 1989
- District of Columbia Bar
- New York State Bar
- Virginia State Bar
- Reinsurance Brokerage Agreement for Captive Insurer. Advised a major university health system in negotiation of a reinsurance brokerage agreement for its captive insurer.
- Acquisition of Licensed Entities. Analysis of notice / approval requirements for acquisition entities licensed by insurance regulators in approximately 39 U.S. jurisdictions.
- Use of Representations & Warranty Insurance. Advised Kirby Corporation on representations and warranty insurance in support of its $419 million acquisition of Higman Marine, Inc.
- Use of Pollution Liability Insurance. Advised two energy companies on the use of pollution liability insurance is support of their acquistion of geothermal projects, and refined-coal projects, respectively.
- Use of Representations & Warranty Insurance. Advised Engie North America on the use of representations and warranty insurance in support of its acquisition of wind power project developer Infinity Renewables.
- Insurance Producer Licensing Act. Advised Fortune 500 financial services group regarding reporting requirements under Insurance Producer Licensing Act in all 50 states upon for-cause termination of licensed employee.
- "Hybrid" Reinsurance Sidecar. Advised BlackRock regarding risk-transfer mechanism for ABR Re venture with ACE Limited. ABR Re included exposure to a diversified mix of reinsurance risks, third-party capital, and asset management by BlackRock.
- Segregated Cell ILS Vehicle. Advised regarding the use of a segregated-cell structure in connection with the issuance of insurance-linked securities to address tail-risk allocation between investors that wish to remain on-risk, and those that desire an earlier termination of their exposure.
- First workers'-compensation earthquake bond. Advised the California State Compensation Insurance Fund in establishing a first-of-its-kind catastrophe bond program covering the Fund's exposure to earthquake risk. The cat-bond notes were issued through a special-purpose Bermuda reinsurer, Golden State Re Ltd, and were rated BB-plus by Standard & Poor's.
- Hedge fund acquisition of major life insurer. Advised on the US$350 million acquisition of the US life operations of Old Mutual Group by a hedge fund.
- Structure to address risk of non-payment by government-run catastrophe fund. Advised on the creation of a risk-transfer structure to address insurers exposed to the risk of slow or delayed payments from a government-run catastrophe fund in the event of a major hurricane. This structure used dual-trigger cat-linked credit-default swaps to provide prompt payment to the insurers, relieving them of the timing and collection risk.
- First reinsurance sidecar capitalized post-Katrina. Advised on the formation and private-placement capitalization of Cyrus Re, the first reinsurance sidecar capitalized post-Katrina, which was also the first to employ leverage, and the first Moody's-rated sidecar offering.
- Risk-transfer mechanisms to facilitate transactions. Advised regarding the use of insurance and reinsurance mechanisms to facilitate a broad range of transactions, including the use of representations and warranties insurance to facilitate acquisitions and other corporate transactions; the use of tax treatment insurance to facilitate structured finance dependent upon a specific tax treatment; and the use of portfolio transfer reinsurance to facilitate insurance company acquisitions.
- Risk-Transfer product design. Advised on insurance products and/or derivative alternatives to address specialized weather, crop, commodity, and financial-market risks.
- Comprehensive reinsurance wording improvement programs. Assisted large reinsurer clients with long-term, multi-year strategy to manage exposure to wording disputes and improve overall contract-wording quality.
- Internal investigations and compliance. Assisted global reinsurer with internal investigation of reinsurance contract compliance in connection with SEC investigation; conducted and oversaw due diligence on insurance and reinsurance matters in connection with insurance company acquisitions.
- Co-author, "Smart contracts in insurance: Making sense of the terminology and developing use," Norton Rose Fulbright, April 10, 2019
- "Principal Repayment Amid Insurance Claims Disputes – New Drama in Insurance-Linked Securities," Corporate Practice NewsWire, December 2012
- "Financial Guaranty Insurance Company (FGIC) In New York Rehabilitation Proceeding," Client Alert, June 19, 2012
- "The Spillover: How The Mess In The Gulf Will Wash Up Onto Insurers," Insurance Advocate, July 26, 2010
- "Insurers and Reinsurers Must Prepare For Complex And Costly Issues From Gulf Coast Oil Spill," Client Alert, June 11, 2010
- "Chilean Earthquake," Client Alert, May 4, 2010
- "US Department of Justice Seeks to Recover Conditional Medicare Payments From Liability Insurance Carriers Who Participated In Claims Settlement," February 8, 2010
- "Study Links Genetically-Modified Corn to Organ Damage in Laboratory Animals," January 29, 2010
- Co-author, "Inside the Reinsurance Sidecar," Insurance and Reinsurance NewsWire, July 2006
Mr. Child speaks on topics such as reinsurance contract wording and reinsurance claim issues, as well as international arbitration and dispute resolution.
- "Cryptocurrencies, Blockchain, and Smart Contracts," Association of Corporate Counsel, Minneapolis, Minnesota, July 2018
- "Insurance-Linked Securities," New York City Bar Association, New York, NY, July 2018
- " RAA ReContracts: Blockchain: What is it? And what might it mean for the reinsurance contract professional?" New York, NY, July 2017
- "Environmental and Transactional Risk Insurance: How to Manage Risks and Legal Challenges," Webinar, The Knowledge Group, April 12, 2017
- "The Use of Representations and Warranties Insurance In M&A Transactions," The Rising Demand for Transactional Risk Insurance, The Knowledge Group, October 14, 2016
- "RAA Re Contracts: The Art of Designing Reinsurance Contracts and Programs," New York, New York, July 2016
- "The Contractual Right to Audit," AIRROC Spring 2016 Membership Meeting, New York, New York, March 2016
- "RAA Re Contracts: The Art of Designing Reinsurance Contracts and Programs," New York, New York, July 2015
- "RAA Re Contracts: The Art of Designing Reinsurance Contracts and Programs," New York, New York, July 2014
- "RAA Re Contracts: The Art of Designing Reinsurance Contracts and Programs," New York, New York, July 2013
- "Navigating to a Successful Commutation," Philadelphia, Pennsylvania, August 2011
- "Reinsurance Outlook 2010: Not Knowing What's Next—Are Reinsurance Wordings Ready for the Era of the 'Black Swan?," New York, New York, February 2010
- "RAA Re Contracts: Contract Wording Pitfalls and Common Errors," New York, NY, July 2009
- "Brokers & Reinsurance Markets Association: Legal Update," Naples, Florida, March 2009
- "Financial Sector in Distress Conference: Implications for Insurance-Related Companies," New York, New York, February 2009
- "AIRROC Membership Meeting: Discovery in Reinsurance Arbitrations and Litigations," New York, New York, July 2008
- "RAA Re Contracts: Contract Wording Pitfalls and Common Errors," New York, New York, July 2008
- "RAA Re Contracts: Contract Wording Pitfalls and Common Errors," Chicago, Illinois, June 2007
- Member: District of Columbia and Virginia Bars