SUBMIT A RISK
For a ground-transportation operator running a fleet of more than 300 power units across multiple markets, commercial auto liability was one of the largest fixed costs on the books — and, in the traditional market, one that returned nothing when loss experience ran favorably. Every premium dollar left the business permanently, regardless of how well the fleet performed. Captives Insure designed a single-line captive program to change that equation.
Rather than continuing to transfer the entire commercial auto spend to a third-party carrier, Captives Insure structured the program to cede 100% of the risk to a captive insurance company owned by the insured. The result: nearly $1.46 million of roughly $2.05 million in gross written premium now flows back to the client's own balance sheet as net premium — available to pay claims and, ultimately, to be retained as underwriting profit.
- Commercial Auto Liability. Written on split liability limits of $125,000 each person / $250,000 each accident bodily injury and $50,000 each accident property damage, over a $50,000 per-accident deductible, on A− AM Best rated admitted paper (Financial Size Category IX).
- Fleet exposure. The program is rated across a fleet of 314 power units, giving the operator a single program spanning its entire owned-and-operated exposure.
- One client-owned captive. 100% of the commercial auto risk reinsures into a captive owned by the insured, consolidating premium, administration, and reporting under a single structure.
- Full risk participation. 100% of the underwriting risk — and 100% of the underwriting profit and investment income on surplus — belongs to the captive's shareholders.
| Program Economics | Amount |
|---|---|
| Gross Written Premium | $2,047,260 |
| Net Premium to Captive | $1,458,673 |
| Retained Share of Gross Written Premium | ~71% |
After fronting, reinsurance, program, ceding, captive operating, and brokerage costs, approximately 71% of gross written premium is recaptured into the client's captive — where it remains available for losses and retained underwriting profit rather than being surrendered to a third-party carrier.
Capital Efficiency
A single captive concentrates premium, surplus, and administrative functions in one client-owned entity — giving the operator one consolidated view of program economics rather than a spend that disappears into the traditional market.
Rated, Compliant Paper
Coverage is issued on A− AM Best rated admitted paper, satisfying the contractual and statutory auto requirements the captive could not meet directly, while 100% of the risk reinsures back to the client.
Claims Influence
As reinsurer of its own policies, the operator gains independent defense counsel and a direct hand in claims adjudication through an independent third-party adjuster — mitigating fraudulent claims, accelerating handling, and controlling the ultimate cost of loss.
Profit Retention
Favorable loss years no longer benefit an outside carrier. Underwriting profit and investment income on surplus accrue entirely to the captive's shareholders, with distributions at the owner's discretion.
By moving from a fully transferred, fully sunk-cost commercial auto spend to a single client-owned captive, the operator now retains nearly $1.46 million in annual premium — turning a recurring expense line into a controllable asset tied directly to the fleet's own performance.
Is Your Fleet the Right Fit for a Captive?
If your organization carries predictable commercial auto 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.