Award-winning collateral trust services
We understand the challenges and costs associated with posting collateral. That's why we offer simple and comprehensive alternatives to letters of credit (LOCs) for your insurance and surety-related collateral requirements. It's also why our Corporate Trust Services' Collateral Trust team has been named the "Global Best Bank for Insurance Trusts" for three consecutive years in an annual survey of thousands of insurance and reinsurance executives worldwide.
A simple alternative to letters of credit
- Reinsurance trust (PDF*) – Take advantage of the best, most cost-effective alternative to LOCs or funds withheld.
- Insurance linked securities (ILS) trust (PDF*) – A simpler, more cost-effective alternative to LOCs.
- Captive trust (PDF*) – Eliminate the redundancies and expenses associated with collateralized LOCs.
- Deductible trust (PDF*) – Increase corporate credit lines encumbered by deductible insurance programs and save most of the fees.
- Surety trust (PDF*) – Replace LOCs used to collateralize surety bonds, or replace the bonds outright.
- UK insurance trust (PDF*) – Replace LOCs used as collateral for UK- and EU-based corporate and captive insurance programs.
- Vermont regulatory trust (PDF*) – Use the trust to satisfy your capital requirements.
The trust advantage
Our trust products provide immediate advantages for your business:
- The trust is usually significantly less expensive than an LOC
- The income from the trust is the property of the depositor
- The assets in the trust generally remain on the books of the depositor
- The trust is a widely accepted form of collateral in the insurance, captive, reinsurance, corporate deductible, and ILS industries
- The draw-down characteristics are similar to those of an LOC
- Unlike the LOC, the trust does not need to be renewed each year, eliminating the time and effort needed for the LOC renewal process
- The trust can often replace multiple LOCs posted to the same carrier
Resources that support your business
Find the information you need to make effective business decisions. We offer authoritative articles, and other Collateral Trust resources. Our trust professionals are industry experts who can work with you to address your insurance and surety-related collateral needs.
For more information, contact Robert Quinn at 203-293-4394 or Michael Ramsey at 425-337-0364.
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Wells Fargo Corporate Trust Services does not provide legal or tax accounting services for its customers. Customers should always consult their own professional tax and legal advisors in connection with any effort to qualify a particular transaction for favorable treatment under applicable tax laws and regulations.