Captive Insurance Programs
Many companies are looking for alternatives to standard insurance as a way of both protecting their assets and increasing their profitability. One option is an insurance captive - a closely held company that provides insurance to and is controlled by its owners. Seubert & Associates is well versed in captive programs and can help you determine if this is the right vehicle for your company.
- Single Parent Captive
an insurance or reinsurance company formed primarily to insure the risks of its non-insurance parent or affiliates.
- Group Captive
a company owned by a trade, industry or service group for the benefit of its members.
- Rent-A-Captive
a company, jointly owned by a number of companies, created to provide a vehicle to meet a common insurance need.
- Association Captive
a company owned by an insurance agency or brokerage firm so they may reinsure a portion of their clients' risks through that company.
- Agency Captives
a company that provides captive facilities to others for a fee, while protecting itself from losses under individual programs, which are also isolated from losses under other programs within the same company. This facility is often used for programs that are too small to justify establishing their own captive.
- 831 (b) Captive
a single parent captive that allows companies to contribute up to $1.2MM in premium into the captive and only pay tax on the investment income. This captive provides significant tax savings and estate planning benefits.
But a captive program is not for every company. We recommend that a company have:
- Minimum annual casualty premiums of $200,000
- Better than average loss experience
- Long-term financial strength and stability
- Management teams committed to safety
- Proper loss control practices in place
- A long-term perspective on risk management
Seubert & Associates has partnered with some of the most reputable and experience captive managers in the United States. We have experience in all types of captives and would be glad to help you determine if a captive program is a good fit for your company.
For more information contact:
Richard Smithbauer
rsmithbauer@seubert.com
Direct dial: 412-223-1417
