The SFIG was developed by and is the intellectual property of HorizonRe (Holding) Limited. The SFIG is based on an “On Balance Sheet Asset Development Strategy” which conforms to Basel II regulations.

This makes it possible for companies with a limited or an intangible asset base to establish assets over a given time period and to secure the borrowing of funds from lending institutions and/or investors.

A company may establish a SFIG to:

• Build financial reserves;
• Secure present or future financial obligations or,
• Create assets in its balance sheet.

For HorizonRe to evaluate and, if appropriate, support the underwriting of a SFIG, detailed corporate information is required and will include:

• Past and present balance sheets;
• Financial forecasts between 4 and up to 8 years, together with explanatory notes on the assumptions on which the forecasts are based and,
• A brief summary of the applicant’s future corporate and financial strategic aims.

The SFIG assessment process can only commence when the applicant has signed an application form and application fees have been submitted.

HorizonRe’s assessment activities are based on risk management concepts and includes financial modelling and redemption time calculations, actuarial assumptions, quantitative methods, based in relation to the information submitted by the applicant.

Once HorizonRe’s assessment process can confirm that a SFIG for the applicant is possible, the SFIG will be underwritten by an Austrian Insurance company in compliance with Austrian statutory life insurance and investment Laws. These laws are stringently supervised by the Austrian Government, especially as they relate to the compulsory insurance statutory and legislated asset reserve requirements.

This form of guarantee is based on a single premium life insurance concept. The guarantee:-

• has no surrender value,
• is commission exempt,
• has a maximum legal duration time of eight years and
• is only available for individuals and companies not registered as taxpayers in Austria.

Depending on the structure of the SFIG and insurance requirements, reinsurance companies worldwide will participate in insuring the mortality risk of key personnel.

As the SFIG sets out to minimise risk during its duration time, a fixed, not a variable interest rate strategy is applied and is only available in EURO denomination.