Mark Fidelman, doing business as Transfer Pricing Economics LLC, is a specialist in the transfer pricing of financial services and financial transactions.
In the financial transactions field, Mr. Fidelman’s expertise includes:
- loans, preferred stock, hybrid instruments, and surplus notes
- every sort of guarantee transaction
- captive insurance premiums
In contrast to financial guarantees, which can be priced through assessment of interest rate differentials on a guaranteed and stand-alone basis, the pricing of performance guarantees, including counterparty guarantees for trading entities and insurance claims guarantees, require models incorporating a return on the guarantor’s capital.
Mr. Fidelman also addresses the broad array of transactions in the financial sector:
- insurers and reinsurers
- asset managers and alternative investment vehicles
- securities and insurance brokers
- investment and commercial banks, their subsidiaries and branches
Mr. Fidelman works with actuaries to establish the pricing of reinsurance transactions. When appropriate, he benchmarks returns on capital to be factored into premium, commission or override transfer prices from the statutory financial accounts of insurers and reinsurers.