Net Lease’s Sale leaseback and Built-to-Suit Strategy

Net Lease’s Sale-leaseback and Built-to-Suit Strategy

The growing business who owns real estate can raise an inexpensive working capital and/or debt reduction with Net Lease’s Sale-leaseback and Built-to-Suit Strategy.

DAJK GROUP NNN

Sale-Leaseback Strategy

Sale-leaseback strategy is a form of financing in which a company sells its real estate for cash and simultaneously signs a long-term lease with the buyer. Sale-leaseback transactions provide the lessee company with a source of capital that is an alternative to other financing sources such as corporate borrowing, mortgaging real property or selling shares of common stock.

Net Lease_Sale Leaseback Diagram

A Seller/Tenant is able to convert the value of real estate assets into working capital it can use to:

  • Pay-down debt
  • Fund acquisitions
  • Reinvest in the core competencies of its business

Build-to-Suit Strategy

Through build-to-suit strategy, Investor/Lender (“Investor”) provides a growing company with the funding for the expansion of an existing facility or the construction of a new facility in a different location.  Investor can source, facilitate, arrange, structure and close the build-to-suit transaction.

Net Lease_Built-to-Suit Diagram

The build-to-suit provides innovative financing for:

  • Expanding existing facilities/constructing new facilities
  • Debt reductions
  • Mergers & acquisitions
  • Leveraged/management buyouts
  • Corporate restructuring/exit financing
  • Acquiring addition facilities, technology, and equipment to grow business
  • Transition out of a synthetic lease, mortgage or other binding debt instruments
  • Matching long-term assets with long-term liabilities

Case Study:  WPC’s Key Facts of Net Lease’s Sale-leaseback and Built-to-Suit Strategy

W. P. Carey Inc. announces that it has acquired a portfolio of three truck and bus servicing facilities for approximately $42.9 million. The facilities, two in Germany and one in Austria, were purchased from the developer and are net leased to wholly-owned subsidiaries of MAN SE for a period of 15 years. (PRNewsFoto/W. P. Carey Inc.)
W. P. Carey Inc. announces that it has acquired a portfolio of three truck and bus servicing facilities for approximately $42.9 million. The facilities, two in Germany and one in Austria, were purchased from the developer and are net leased to wholly-owned subsidiaries of MAN SE for a period of 15 years. (PRNewsFoto/W. P. Carey Inc.)
  • Well-established, industry-leading tenant: The MAN Group is one of Europe’s leading producers of commercial vehicles, engines and mechanical engineering equipment. It is a publicly traded company with a market capitalization of approximately $15 billion and is 75% owned by German automotive group Volkswagen AG.
  • Critical, well-located facilities: The three facilities, originally built to tenant specifications, are among the largest service stations operated by the MAN Group and serve as an important sales driver for its 24/7 fleet repair and maintenance servicing operations. Located on arterial routes, the facilities benefit from the high commercial traffic flow that connects several major German and Austrian cities and links Europe’s eastern and western markets.
  • Long-term net leases with built-in rent growth: All three facilities are net leased, with a remaining term of approximately 15 years and CPI-based rent escalations.

Reference:  NEW YORK, Sept. 9, 2015 /PRNewswire/ — (NYSE: WPC), a real estate investment trust specializing in corporate sale-leaseback and build-to-suit financing, and the acquisition of single-tenant net lease properties, announced today that it has acquired a portfolio of three modern truck and bus servicing facilities for approximately $42.9 million (€38.9 million). The facilities — two in Germany and one in Austria — were purchased from the developer, Wohnungsunternehmen Semmelhaack, and are net leased to wholly-owned subsidiaries of MAN SE (The MAN Group).

[Learn more…]

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Related blogs:

  1. Big Buyer of Net Lease Report – March 2015
  2. Top 6 Terms You Should Know Before Investing in net lease commercial real estate
  3. First Key selection of net lease Commercial Real Estate investment…?
  4. Net Leased Commercial Real Estate (NNN CRE): Step #2
  5. Should you invest in Net leased commercial Property? Or Multifamily or Self-Storage?
  6. How much McDonald invests in net lease commercial real estate?
  7. TOP Net Lease CRE Investment Books – April Selection! **Additional 10% discount!
  8. Case Study: Sale-Leaseback Technique of Wendy’s and McDonald
  9. What is an alternative investment real estate versus vacation home…?
  10. In Hong Kong, the “Mosquito Apartments” sells for $US 2,872 per square foot
  11. Net lease or Triple-net Lease is an Alternative Solution for Removing 12 Headaches in Real Estate Rental
  12. Net Lease Case Study: Family Dollar

If you would like to inquire about our Concierge Services, please sign-in our free consultation

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Our group of expert Oil Trader, Commercial Real Estate Specialist, Asset Management, and Business & Financial Analyst, can help to answer all your questions and to provide you with investment alternative and options catered to your investment strategy.  Sign-up for a free 30-minute consultation with us now!

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Net Lease Case Study: Checkers Restaurant [**ABS SLB (15)]

**Absolute:  ABS

**Sale leaseback:  SLB

Checkers – Part of Rare Portfolio of 9 [ABS SLB (15)]

Checkers Restaurant

Address:  3150 East Bay Drive | Clearwater, FL 33771

Purchase Price: USD 868,400

Fixed Annual Income:  4.50%

Offer Summary:

Price:
$868,400
Cap Rate:
4.50%
Property Type:
Retail
Building Size:
+/-738 SF
Land Area:
+/-0.42 Acres
Property Use:
Restaurant
Current NOI:
$580,342 (Portfolio)
Lease Term:
NNN
Location:
Clearwater, FL

Location Description

Clearwater, FL is a year round vacation destination, with a strong population of over 110,000 within a 3-mile radius of the subject property. The property is on a desirable hard corner along a dense retail corridor with close proximity to Publix, LA Fitness, Winn-Dixie, Wal-Mart, PTEC Clearwater campus, Southeast College, and The Belcher Soccer Complex. The St. Petersburg-Clearwater International Airport is +/- 4.3 miles away.
Portfolio Locations: AL, FL, GA, and MI.

Highlights

Clearwater, Florida Hard Corner Location | Vacation Destination – Clearwater is a year-round vacation destination, with a strong population of over 110,000 within a 3-mile radius of the subject property. The property is on a desirable hard corner along a dense retail corridor with close proximity to Publix, LA Fitness, Winn-Dixie, Wal-Mart, PTEC Clearwater campus, Southeast College, and The Belcher Soccer Complex. The St. Petersburg-Clearwater International Airport is +/- 4.3 miles away.

Part of Rare Portfolio of 9 Assets with Geographic Diversity – The subject property is part of a portfolio of Checkers’ last corporate-owned stores, offering investors immediate geographic diversity across four states in the portfolio at a discounted total portfolio price. All stores have been in operation for over twenty years and a majority of the stores have been upgraded recently.

Corporate Sale-Leaseback | 15-Year Term – Long-term sale-leaseback opportunity backed by a highly secure restaurant chain. Each lease will include two (2), five (5) year renewal options.

Absolute NNN Lease – No landlord responsibilities.

Strong Rent Escalation – The Checkers leases include 10% rental increases every 5 years, providing a hedge against inflation.

Low Rent-to-Sales Ratio – All locations have a low 6% store rent-to-sales ratio, allowing sufficient operating cushion for each restaurant.

Growing QSR Chain – Checkers opened 35 new locations in 2014 and has plans to continue to grow in 2015 with 80 locations approved.

Established Chain with High Average Sales – Checkers is the nation’s largest chain of double drive-thru restaurants with over 800 locations. In Nation’s Restaurant News’ Top 100 census, the company is ranked No. 89 in U.S. sales. The average corporate Checkers reported +/- $1 million in net sales.

[Learn more…]

For further discussion, please sign-up for our free 30-min confidential consultation

Growing, Evolving and Pushing Forward!


Related blogs:

  1. Big Buyer of Net Lease Report – March 2015
  2. Top 6 Terms You Should Know Before Investing in net lease commercial real estate
  3. First Key selection of net lease Commercial Real Estate investment…?
  4. Net Leased Commercial Real Estate (NNN CRE): Step #2
  5. Should you invest in Net leased commercial Property? Or Multifamily or Self-Storage?
  6. How much McDonald invests in net lease commercial real estate?
  7. TOP Net Lease CRE Investment Books – April Selection! **Additional 10% discount!
  8. Case Study: Sale-Leaseback Technique of Wendy’s and McDonald
  9. What is an alternative investment real estate versus vacation home…?
  10. In Hong Kong, the “Mosquito Apartments” sells for $US 2,872 per square foot
  11. Net lease or Triple-net Lease is an Alternative Solution for Removing 12 Headaches in Real Estate Rental
  12. Net Lease Case Study: Family Dollar

If you would like to inquire about our Concierge Services, please sign-in our free consultation


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*** TAKE ADDITIONAL 10% OFF for ALL FIRST TIME PURCHASER


DAJK GROUP is the place where investors, business owners and entrepreneurs can research and find useful information, insight, resources, advice, guidance and inspiration for acquiring funds for their project, acquisition for their net lease commercial real estate, increasing their assets and running their profitable business.

Our group of expert Oil Trader, Commercial Real Estate Specialist, Asset Management, and Business & Financial Analyst, can help to answer all your questions and to provide you with investment alternative and options catered to your investment strategy.  Sign-up for a free 30-minute consultation with us now!

Growing, Evolving and Pushing Forward!

Case Study: Sale-Leaseback Technique of Wendy’s and McDonald

Sale-leaseback

Wendy’s Refranchising 640 Stores

Following a pattern we’re seeing in the wider market, Wendy’s this week announced that they were going to sell as many as 640 stores to their franchisees. This on the heels of McDonald’s announcing they would do the same for 3,500 stores as part of their effort to boost the bottom-line.

It’s not exactly clear how many, but certainly some sizeable percentage of these stores may be candidates for sale-leasebacks by the Franchisees. Sale-Leaseback activity in the franchise space has been brisk this year and a flurry of new inventory of this type is exactly what the market is looking for.

With constrained supply and high demand, these franchisees would likely have no problem doing sale-leasebacks to help them finance the store purchases, particularly if the stores in question have a good sales history and the franchisee is substantial enough.

This refranchising trend has been increasing lately largely as a mechanism of the franchisors to trim corporate overhead costs.  [1]

Why and How?

Commercial real estate owner find ways to generate revenue and increase capital. A sale-leaseback technique unlock the equity a company has in its real estate and to convert that equity into cash. This involves selling the institution’s headquarters or branch offices and simultaneously leasing them back long-term.

In addition, many property-owners are recognizing the tax benefits and other advantages of these transactions. Finance adviser/consultant can advise clients on the benefits and help them find sale lease back providers.

In general by sale-leaseback its property, a property-owners can lower its operating costs and use that money to increase its cash flow.

Six benefits of sale-lease back transactions:

1)  Favorable Impact on Earnings.  A sale-leaseback transaction converts noncurrent fixed assets such as real estate into current liquid assets— i.e. cash.  It can generate a gain on the sale when properties’ market or appraised values are more than the depreciated book value. Property-owners often can improve their earnings by reinvesting the cash at a greater rate, retiring high cost debt funding mergers and acquisitions, expanding operations, or taking advantage of special investment opportunities.

2)  Total Facility Control. Simultaneously with the sale, the company leases back the property for an initial lease term — typically 15 years with renewable five-year options. In effect this gives the company control of its real estate for at least 40 years. This would be identical to ownership of the property’s normal useful life.

3)  Low cost of Money.  A sale-leaseback transaction can be a quick economical way to raise capital compared to the process of originating a new stock issue. Issuing new stock may result in an ownership dilution at unfavorable prices or with unwanted investors.

The leaseback is a low-cost technique that avoids these consequences as a rule, a sale-leaseback transaction should provide capital at an effective cost of 100 to 150 basis points less than that of long-term mortgage financing or the long-term conventional debt market. It should have no restricted covenants and no principal repayment after all lease payments.

4)  Recapture all costs. In a typical sale-leaseback transaction, the company would recapture all costs relating to the property’s current market value, including legal fees, surveys, architectural engineering, title, and any other closing costs or property- related fees. This contrasts to conventional long-tern mortgage financing, which is usually restricted to percent of the current market value.

5)  Regulatory Compliance. The cash a business receives from a sale-leaseback transaction can help it improve its primary and total capital-to-assets ratios The profit on a sale-leaseback transaction from depreciated value to current appraised value can increase a company’s net worth.

6)  Off-balance-sheet Finance. By carefully structuring an operating lease, the transaction would not require capitalization under Financial Accounting Standards Board is criteria.  In turn, this allows off-balance-sheet treatment, which in effect would have a more favorable impact on the company’s earnings and improve its financial ratios.

RESOURCES from Amazon Corner

  1. Principles of Real Estate Syndication: With Entertainment and Oil-Gas Syndication Supplements Included
  2. Maverick Real Estate Financing: The Art of Raising Capital and Owning Properties Like Ross, Sanders and Carey
  3. Real Estate Investment
  4. Real Estate Finance

Publication

[1] Wendy’s Refranchising 640 Stores


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Financial Planning is like garlic to a vampire

DAJK GROUP is the place where investors, business owners and entrepreneurs can research and find useful information, insight, resources, advice, guidance and inspiration for acquiring funds for their project, acquisition for their net lease commercial real estate, increasing their assets and running their profitable business.

Other books are recommended here

You can browse through our Amazon Corner for any other interests.  Taking advantage of addition 10% OFF for any first time purchase.

Building a Finance Plan Geared to Growth

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I would like to share with you our book reviewer from Ms. P. Fisher, “Garlic to a vampire“.

I recently read Daniel Nguyen’s Building a Finance Plan Geared to Growth, and have decided to keep this as my small business guidebook to finance management.  I am not an expert, hardly even a novice, when it comes to managing my business.  As a “creative” type, financial planning is like garlic to a vampire.  And yet, financial planning is essential to running a successful business.  I believe that part of my resistance comes from lack of understanding the definitions and how to do things such as create financial statements like profit and loss, cash flow, etc.  When we don’t understand how something works it becomes twice the job and, in my case, gets put on the bottom of the “To Do” pile.  What I really like about this guidebook on how to build a financial plan is that Mr. Nguyen explains what all of these terms mean. He gives us not just a textbook definition, but also shows HOW they work in relation to the overall picture of getting a small business loan, for example. He then shows a sample of what that financial statement should look like.  THIS I can understand!  He also tells the reader what to ask for –and what NOT to ask for.  There is information on establishing credit well in advance of going for a loan, things that I can do now to prepare for my possible or projected business needs in the future. He includes guideposts of ways to evaluate the progress and effectiveness of my current business needs, and then how to assess my possible future needs. Then, for when I am ready to go for a loan, I like the True-False test that he includes in the text.  This test allows me, as the business owner, to self-score how prepared I am to go meet with the banker.  This book is a wealth of good advice, resources and tools that I can use in understanding and applying good financial practices in my business.

I feel that if I follow the outline of this book that I could meet with a bank lender and not appear to be an idiot.  Mr. Nguyen has thought of not only the standard things that I will need to bring and think about beforehand, but also other possibilities that a lender might want to know.  For example, he writes that I, as a business owner, should have not one, but two possible repayment plans, to reassure the lender that I am a good risk. This is good, easy-to-understand information- he gets a score of “10” from me on a practical help scale.

Growing – Evolving and Pushing Forward!


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Top 6 Terms You Should Know Before Investing in net lease commercial real estate


 

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TOP Net Lease CRE Investment Books – April Selection! **Additional 10% discount!

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These books are providing business owners, investors and entrepreneurs useful information, insight, resources, advice, guidance and inspiration for acquiring their commercial real estate investment, increase their assets and profitable business.

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Top 6 Terms You Should Know Before Investing in net lease commercial real estate

First Key selection of net lease Commercial Real Estate investment…?

Net Leased Commercial Real Estate (NNN CRE): Step #2

How much McDonald invests in net lease commercial real estate?


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4 fundamental Ways Really Increase Your Revenue and Asset in Business

Make more money 8

Highlights:

  1. Sell more
  2. Sell bigger: larger accounts or large profit margin
  3. Spend less: strategically and intelligently
  4. Invest in your business

There are numerous of articles, systems, podcasts, videos, infomercials, webinars, books, and schemes all designed to show you how to do just that.  In addition, friends and family members are sharing the latest and greatest multilevel marketing organization, it’s someone showing you how to quickly buy and flip real estate, buy and sell stocks…etc.

In profitable business, the hard truth is that there are not many shortcuts. Business success and growth usually takes hard work and persistence. Let me suggest that if you are in business for yourself, there are really only four ways to make more money:

Make more money 9

  1. Sell more:

The bottom line is that you need to sell more of something to make more money. If you are a business owner, you don’t need someone to tell you that or to try and sell you his or her wares: You already have products and services to sell.

So the first trick is to expand the business you already have. There are a couple of ways to do just that:

  • Acquire more traffic/customers:  They key to getting more traffic in the door is to expose your business to new people. Market more, make more, it is (almost) as simple as that.  We pay for Facebook’s advertisement creating new prospect clients.
  • Create a new profit center: All great businesses figure out new products to sell and new services to offer. GE sells dishwashers yes, but it also sells jet engines and real estate financing. If you want to grow, you need to expand your offerings too.  Our products and service page just adds an Amazon Corner to serve more to our clients.
  1. Sell bigger:

It’s in two ways:

Make more money 2

First, you can sell to bigger clients and customers – in other words, those with bigger budgets. For instance, if you primarily sell to consumers and other small businesses, you might find that selling your wares to corporations and government entities will yield bigger revenues.

Second, you can sell products with a bigger profit margin. Even selling the same amount of such products will result in more net income.  For online business, you can start with selling someone else’ products which can be found on Amazon Corner; then later you create your own products.  The business did the same work, but made a lot more money.

  1. Spend less:

The important thing to keep in mind when cutting your overhead is to do so strategically and intelligently. You certainly do not want to cut back too much on those areas that generate revenue – advertising, for example.

From your annual budget review, there are probably many areas where you could cut some costs.  If you haven’t done an audit of your business expenses recently, consider doing so now.  Please contact us for a free budget analysis.

  • Insurance
  • Labor
  • Rent
  • Office supplies
  • Product line
  1. Invest in your business:

Naturally, investing is always a smart individual wealth-building strategy, but in this case, we are talking about investing in your business.

Make more money 6

Our physician client took an “expensive factoring” in an amount of $650,000 against his cash flow, $40,000 a month for 12 months.  This calculated risk generates more than $2 million revenue for his practice.  Please contact us for free consultation and business analysis.

In addition, our physician client invested in his office building.  He purchase entire building with 6 offices for $750,000.  He used to pay for his lease approximately $6500 a month.  After his acquisition, his net operating income (NOI) is approximately $8000 a months or his capitalization rate is about 12.8%.

In fact, by investing in your business, acquiring a commercial office building, be it remodeling the premises, paying off debt or buying new equipment, you increase its equity value. Eventually, that equity will become even more valuable down the road.

In conclusion, if you want to make more money from your business, you’ll have to do it, in the words of the famous commercial, “You will have to earn it.”


DAJK Group

Please contact us for free business consultation

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Building a finance Plan

Always protect your investment against risks

Always protect your investment at any cost.  These insurance companies are rated best insurers in 2015.

Insurer 4

Our client/buyer concerns of his oversea manufacture/supplier whether or not they would perform.  We recommend modifying the payment term with the cost of Performance Bond in the cost of purchase.  This recommendation is not only encouraging and assisting the supplier covering their cost; but it also provides the peace of mind to our client/buyer.  The PB cost is average about 3% of the insured amount.  Therefore, if you would like to protect $US 100,000 Purchase Order, it will cost you additional $US 3,000.

In the global category:

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  • Chubb is Best Directors and Officers Insurer
  • Zurich is Best Political Risk Insurer and Best Crime/Fidelity Insurer
  • FM Global is Best Supply Chain Trade Disruption Insurer
  • Euler Hermes is Best Trade Credit Insurer
  • Aon is Best Global Insurance Broker

In addition to the global winners, Global Finance recognized top insurers and best overall brokers in seven regions of the world, including North America, Western Europe, Central and Eastern Europe, Latin America/Caribbean, Asia Pacific, the Middle East and Africa.

GLOBAL WINNERS

Best Global Property & Casualty Insurer AIG
Best Global Insurance Broker Aon
Best Global Casualty Insurer Allianz
Best Global Property Insurer AIG
Best Global Environmental Liability Insurer Lloyd’s
Best Global Political Risk Insurer Zurich
Best Global Trade Credit Insurer Euler Hermes
Best Global Supply Chain & Trade Disruption Insurer FM Global
Best Global Kidnap & Ransom Insurer Lloyd’s
Best Global Directors and Officers Insurer Chubb
Best General Employment Practices Liability Insurer Allianz
Best Global Cyberrisk Insurer AIG
Best Global Crime/Fidelity Insurer Zurich

 

REGIONAL WINNERS

  North America
Best Primary Property & Casualty
(P&C)  Insurer
AIG
Best Broker Wells Fargo
 
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Best Primary P&C Insurer Allianz
Best Broker Marsh
 
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Best Primary P&C Insurer Generali
Best Broker GrECo JLT
 
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Best Primary P&C Insurer Mapfre
Best Broker Marsh
 
 Asia-Pacific
Best Primary P&C Insurer Ping An
Best Broker Jardine Lloyd Thompson
 
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Best Primary P&C Insurer Oman Insurance
Best Broker Aon
 
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Best Primary P&C Insurer Old Mutual
Best Broker Ascoma

GLOBAL WINNERS PROFILE SUMMARY

Best Global Property and Casualty (P&C) Insurer: AIG

AIG’s property-casualty business counts most of the Fortune 500, Fortune 1000 and Fortune Global 500 companies among its customers. In 2013, the firm “paid an average of over $100 million in claims each business day.”

Best Global Insurance Broker: Aon

Aon combines global reach with technical expertise, industry specialization and data analytics to help businesses worldwide address increasingly complex and emerging risks. In 2014, Aon created an Ebola Liability Insurance Wrap to help healthcare institutions address potential coverage gaps.

Best Global Casualty Insurer: Allianz

The Allianz Global Claims Review 2014 reported: “Liability claims are becoming more international, complex and costly as awareness of compensation and US-style litigation continues to spread.” Allianz Global Corporate & Specialty provides capacity, industry expertise, underwriters, claims and risk consultants to address increasingly complex liability exposures.

Best Global Property Insurer: AIG

AIG launched a new line of multinational commercial property products with expanded coverage, loss prevention engineering and risk management solutions for midsize businesses with global risks.

Best Global Environmental Liability Insurer: Lloyd’s

With many countries tightening their environmental regulations, several Lloyd’s insurers offer specialty products to cover related exposures. For instance, Lloyd’s market participant Beazley offers site-specific environmental coverage for corporations, as well as professional liability insurance for environmental contractors.

Best Global Political Risk Insurer: Zurich

Companies with investments in developing countries have faced an increased risk of expropriation, confiscation and nationalization from host governments. Zurich provides coverage against such related risks as currency inconvertibility and political violence.

Best Global Trade Credit Insurer: Euler Hermes

The Euler Hermes credit database includes more than 40 million companies, which speeds underwriting and gives clients vital intelligence on trading partners. The insurer maintains a worldwide network of credit analysts.

Best Global Supply Chain Trade Disruption Insurer: FM Global

FM Global’s supply chain solution combines insurance with risk assessments and engineering capabilities at supplier locations. Its Contingent Time Element Extended coverage can provide protection from losses occurring at different tiers of suppliers in a company’s supply chain.

Best Global Kidnap and Ransom Insurer: Lloyd’s

Kidnap & Ransom insurance was pioneered by Lloyd’s to protect individuals and corporations. Hiscox, a leader in K&R, teams with consultant Control Risks to help clients mitigate risks with security advice and decisive on-the-ground action, where necessary.

Best Global Directors and Officers Insurer: Chubb

Executive risk tracks business exposures, including liabilities from mergers and acquisitions. Robert Cox, executive vice president, Chubb & Son, and chief operating officer, Chubb Specialty Insurance, states that the “threat of a data breach has created a new wave” of challenges.

Best Global Employment Practices Liability Insurer: Allianz

Through its worldwide underwriting centers, Allianz Global Corporate & Specialty offers employment practices liability and other financial lines insurance for companies ranging from large multinationals to small and medium-size enterprises.

Best Global Cyberrisk Insurer: AIG

As cyberthreats become more complex, AIG continues to expand its solution set, recently adding insurance coverage for property damage and bodily injury exposures. The insurer offers end-to-end solutions to address cyber-exposures.

Best Global Crime/Fidelity Insurer: Zurich

When crimes occur, Zurich’s global claims team works with clients to mitigate the loss and helps them implement processes and best practices to prevent future incidents or help speed up their detection.

REGIONAL WINNERS

North America

Best Primary Property & Casualty (P&C) Insurer: AIG

American International Group had to be bailed out by the US government during the 2008 global financial crisis. But under CEO Robert Benmosche, it appears to be back on track. Its insurance operations, particularly in North America, have remained strong.

Best INSURANCE BROKER: Wells Fargo

Wells Fargo restructured its US insurance brokerage division last year, focusing on larger markets that generate higher revenue. Company leadership said the move was a prelude to growing the business. The company has had success cross-selling insurance to banking customers and managing risks for mid-market employers.

Western Europe

Best Primary P&C Insurer: Allianz

One of the world’s largest insurers remains one of its most innovative. Whether it is launching new marketing partnerships or investing in consumer service technologies, Allianz finds growth. Despite economic weakness in its biggest markets, Allianz’s gross written premiums were up nearly 5% in the third quarter last year. Germany and the United Kingdom were key contributors to the growth.

Best Broker: Marsh

Marsh boasts a 10.5% share of global brokerage revenue. It has major operations in all significant economic regions and provides services for all forms of personal and commercial risk. Operating results for Europe are not reported separately, but the Europe, Middle East, Africa region accounts for more than one-third of Marsh’s total revenues.

Central & Eastern Europe

Best Primary P&C Insurer: Generali

Generali has been forced to bolster its capital position since the financial crisis. Appointed in 2012, Assicurazioni Generali group CEO Mario Greco has raised nearly €4 billion ($4.7 billion) from asset sales and has already hit 2015 targets on solvency and profitability. The company has refocused on core European markets and is increasing its investment across the Central and Eastern European region.

Best Broker: GrECo JLT

Despite tough economic times in the region, GrECo JLT has continued to grow organically and through acquisitions in Central and Eastern Europe. One of the first insurance brokers to set up shop in a formerly communist country (Hungary), the firm has launched offices across the region. The 20% stake in the company purchased by international broker Jardine Lloyd Thompson has broadened the company’s service capabilities.

Latin America/Caribbean

Best Primary P&C Insurer: Mapfre

Since launching operations in Colombia in 1984, the Madrid-based insurer has become the largest nonlife insurer in Latin America, with a 9.5% share of the market in 2013. The region accounts for an increasing share of the company’s business and growth, and CEO Antonio Huertas Mejías plans to invest further in Mexico. Mapfre had a solvency ratio of more than 240% at the end of 2013.

Best Broker: Marsh

With 4,200 employees in Latin America, Marsh has a significant presence in most countries in the region. It maintains relationships with correspondents where it doesn’t have office locations. It is growing organically and through acquisitions in the region—most recently, brokers in Peru, Panama and the Dominican Republic.

Asia-Pacific

Best Primary P&C Insurer: Ping An

Ping An is the fastest-growing P&C insurance company in China since the monopoly of the state-owned People’s Insurance Company of China was dissolved in 1988. After taking losses of nearly $4 billion from an investment in Fortis Group in 2008, Ping An is now more focused on developing its massive and still rapidly growing home market.

Best Broker: Jardine Lloyd Thompson

The company’s roots in Asia date back to 1832, when trading house Jardine Matheson was launched in Canton. It has become an international insurance brokerage in the past two decades, but Asia has remained a key region for the company. It recently acquired businesses in emerging Asian markets and is opening its first office in India.

Middle East

Best Primary P&C Insurer: Oman Insurance

Oman Insurance is headquartered in Dubai and has offices in all the United Arab Emirates, Oman and Qatar. It is growing significantly faster than the broader Middle Eastern insurance market and is making innovative use of pricing data and analytics in its business, say market analysts.

Best Broker: Aon

Aon established its Middle East presence in 1985. Headquartered in Dubai, Aon Middle East now has offices across the region and employs more than 300 people. With its extensive resources, Aon helps clients manage the full range of commercial, personal and political risks in the Middle East.

Africa

Best Primary P&C Insurer: Old Mutual

Established as a mutual insurance company in South Africa in 1845, Old Mutual, now headquartered in London, remains one of the biggest P&C insurers in Africa. Its asset and wealth management businesses suffered badly in the financial crisis, but the company has rebounded. Committed to expanding its African insurance operations, it recently acquired businesses in Ghana, Nigeria and Kenya.

Best Broker: Ascoma

The Monaco-based company has built one of the biggest insurance brokerage networks in West Africa, focusing on French-speaking countries. It currently offers support for personal and commercial insurance needs in 22 countries in the region and has deals with larger international brokers in markets it does not currently serve.


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