Captives
Advice in 9 key areas:
CAPTIVES
Captives are a well established alternative to buying insurance through the traditional insurance markets.
They suit businesses with a significant premium spend, a better than sector average loss ratio, a reasonably strong balance sheet and an appetite for risk/reward.
They can be used for a company's own risks or for third party risks.
Approximately 80% of FTSE 100 companies and 50% of all FTSE companies currently operate a captive.
We specialise in delivering high quality captive feasibility studies to help businesses assess the cost/benefit of establishing various forms of captive, in particular:
- Wholly owned captives (commonly known as a Captive or Captive Insurance Company).
- Cell captives (commonly known as a Protected Cell Company, PCC, Segregated Account Company or SAC).
- Individual cells within a cell captive (commonly known as a PCC Cell or SAC Cell).
- Mutual insurance companies (commonly known as a Mutual).
- Other alternative risk transfer (ART) vehicles.
Following a positive captive feasibility study, we project manage the setting up of the chosen insurance vehicle, including:
- Finalising the choice of domicile
- Captive formation documentation
- Securing regulatory licences
- Financial solvency requirements
- Reinsurance protection
- Key financial measures
- Selection and appointment of captive managers and investment managers
- Tax strategy (via selected tax advisers)
- Programme structure
- Policy wording
As well as capturing a broad range of operational risks, increasingly, captives are being used by companies to manage financial risks such as pension deficits and environmental liabilities. Law firms, accountancy firms and other professionals are also using captives to finance and manage their own and their clients risks.
For organisations that already operate a captive, we are able to deliver independent captive performance reviews and captive management reviews.
To explore how our distinctive approach could benefit your business, please contact Nigel Wallis on 0151 906 1000 or contact us.
