The Financial Background of 777 Partners

777 Partners is an insurance company that relies on reinsurance, which is essentially taking on risk from other insurance companies. They invest in alternative and riskier assets, such as mortgage bonds and structured litigation settlements, which offer higher profits but also higher risk. Their money comes from insurance premiums, and they strive to match their liabilities with their assets. However, their financials have not been audited, which raises concerns among regulatory authorities. Additionally, their credit rating has been downgraded, making it challenging for them to borrow money for future investments.