Residual Value Insurance (RVI) & Residual Value Guarantees (RVG)
At GBJ we work closely with our clients as partners providing Residual Value Insurance (RVI) to enhance and add collateral support solutions to financing arrangements for asset based transactions.
RVI provides the asset owner and/or their financiers with the certainty of a declared asset value at a pre determined time in future, an invaluable means of balancing exposures in volatile markets.
RVI is an equally effective product used to secure balance sheet protection, enhanced accounting treatment and capital charges relief.
In certain cases Residual Value Guarantees (RVG) can be used to offer equally effective cover.
RVI provides absolute confidence to financial arrangements and can be used to compelling effect as a form of financial support to bring new ventures and leasing operations to successful launch through delivering tangible certainty for future asset values.
At GBJ every enquiry is treated on an individual ‘case by case’ basis to ensure that future asset values are properly agreed between our client and the underwriter. Wordings are carefully structured, in a comprehensive and professional manner, with a view to preparing for the clearest outcome in terms of asset valuation at the policy term, to meet the expectations of both parties.
RVI policies are often structured to run concurrently with medium term financings, for example in conjunction with lease terms, therefore it is of paramount importance that the RVI specialists at GBJ work exclusively with S&P rated ‘A’ minimum and equivalent global insurance markets and banks.