SUBMIT A RISK
As a vertically integrated developer, builder, and operator of attainable multifamily housing across the Sun Belt, the organization manages every stage of the real estate life cycle in-house — from land acquisition and construction through long-term property management. That integrated model concentrates a meaningful general liability exposure on the balance sheet, and with a strong loss history, much of the premium it paid into the traditional market was simply funding its carriers’ underwriting profit. Captives Insure designed a general liability captive program to redirect that value back to the business.
Rather than continuing to transfer that premium entirely to a third-party carrier, Captives Insure structured the general liability program so the risk is reinsured to a captive insurance company owned by the insured, via the EmpoweredRE reinsurance facility. The headline result is straightforward: the captive retains nearly $1 million in gross written premium — capital that now stays on the client’s own balance sheet, available to pay claims and to be kept as underwriting profit.
- General Liability. A primary general liability program covering the developer’s nationwide premises and completed-operations exposure.
- Rated fronting paper. Coverage is issued on A− AM Best rated paper, then reinsured back to the client — satisfying contractual and statutory requirements the captive could not meet on its own.
- Full risk retained. The captive retains the full policy limit of each loss, so the entire underwriting result belongs to the owner.
- Client-owned captive. The program reinsures into a single captive owned by the insured, held within an NAIC-approved reinsurance trust at a Qualified US Financial Institution.
After fronting, program, ceding, captive operating costs, and brokerage, the captive retains nearly $1 million in gross written premium. Instead of that premium being surrendered to a third-party carrier, it remains available for losses and, where loss experience is favorable, accrues to the owner as retained underwriting profit.
Profit Retention
Favorable loss years no longer benefit an outside carrier. The underwriting profit and investment income on surplus accrue to the captive’s shareholders, with distributions made at the owner’s discretion.
Rated, Compliant Paper
Coverage is issued on A− AM Best rated fronting paper, satisfying the contractual and statutory requirements a captive cannot meet directly, while the underlying risk reinsures back to the client.
Claims Influence
As reinsurer of its own policy, the insured gains independent third-party claims administration and national defense counsel — mitigating fraudulent claims, accelerating handling, and controlling the ultimate cost of loss.
Capital Efficiency
Premium and surplus are concentrated in a single client-owned entity, giving the owner one consolidated view of program economics and a long-term asset built from recurring spend.
By moving from a fully transferred general liability spend to a client-owned captive structure, the developer’s captive now retains nearly $1 million in gross written premium — capital that stays on its own balance sheet rather than funding an outside carrier’s profit.
Is Your Business the Right Fit for a Captive?
If your organization carries predictable general liability exposure, favorable loss history, and meaningful annual premium, a captive may convert that spend into retained profit. Captives Insure designs, fronts, and reinsures programs that put underwriting profit back where it belongs — with you.