Tool 03
Capital at Risk
Capital committed to legal assets is written off matter by matter. This models how much of a book is exposed to loss, and how much an agreed protection limit is intended to preserve.
Illustrative position
Illustrative example only
- Total capital deployed
- £36m
- Capital in unsuccessful matters
- £12.6m
- Preserved by protection limit
- £8.8mSubject to underwriting and the terms of any policy issued.
- Capital left unprotected
- £3.8m
- Gross proceeds from successful matters
- £58.5m
Net position — unprotected
£22.5m
Net position — with protection
£31.3m
How to read this
- Outcomes are modelled at the portfolio level using a single success rate — real books have correlated duration, quantum and enforcement risk.
- Preserved capital is the agreed proportion of capital deployed into unsuccessful matters, not a guarantee of return.
- Return multiple applies only to capital in successful matters and ignores timing, cost of capital and enforcement delay.
- No premium, attachment point, retention or availability of cover is implied by any figure shown.
Discuss a real structure
These tools describe how exposure is measured. Terms, limits and availability are decided by underwriting on the facts of the matter.
Request a confidential assessmentGeneral information only. This tool does not provide insurance, legal, investment or financial advice, does not quote premiums, and does not indicate that cover is available.
All figures are illustrative and used to explain how exposure is measured. They are not indicative of pricing, terms or the availability of cover.