The Capital Fund All in Insurance Guarantee (CFIG®) was developed by Ulf von Brosowski. The CFIG® is financial model and intellectual property Ambassador Investment Captive Inc. / USA.
The CFIG® model is registered as trade mark/ financial instrument in Switzerland.
The CFIG financial instrument 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 corporation may establish a CFIG to:
- Build financial reserves;
- Secure present or future financial obligations or,
- Create assets in its balance sheet.
For AIAG to evaluate and, if appropriate, support the underwriting of a CFIG, detailed corporate information is required and will include:
- Past and present balance sheets;
- Financial forecasts between 5 and up to 10 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 CFIG assessment process can only commence when the applicant has signed an application form and application fees have been submitted.
AIAG’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 AIAG’s assessment process can confirm that a CFIG for the applicant is possible, the CFIG will be underwritten by an Insurance company in compliance with Luxemburg statutory life insurance and investment Laws. These laws are stringently supervised by the Luxemburg 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 (citizens in the European Union) and companies not registered as taxpayers in Luxemburg.
Depending on the structure of the CFIG and insurance requirements, reinsurance companies worldwide will participate in insuring the mortality risk of key personnel.
As the CFIG 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.