Captives
Corporations, non-profits, and association groups are increasingly recognizing the benefits of forming a captive insurer. There are many types of captive insurers, including wholly-owned subsidiaries of a parent company, association captives, and “cell” captives. Captives may be domiciled offshore, although an increasing number of states within the U.S. provide an attractive domicile, including Hawaii, Arizona, Colorado, South Carolina, and Vermont.
Captives are created to reduce premiums and provide better oversight of claims handling. In forming a captive it is important to seek actuarial advice to evaluate the cost benefits, evaluate exposures, set premium and reserves, and set capitalization levels. Captive insurers should be aware of the potential impact of the new International Solvency II Standards, including the cost of capital method for calculating risk margins and new capital requirements.
Garland Actuarial can assist you in the formation of a captive, in the ongoing evaluation of reserves and financial performance, and in providing the requisite Statement of Actuarial Opinion.

We have evaluated the pricing and reserving for many captives, including:

  • Adecco Re (captive of Adecco)
  • FL Insurance Company (captive of Marriott Corporation)
  • NW Re (captive of Costco Wholesale)
  • Triax (captive of Nike)