SUBMIT A RISK
A real estate holding company carried a property schedule most carriers approach with caution: more than $900 million in total insurable value across a geographically diversified portfolio, with meaningful earthquake, named-wind, and flood exposure. Year after year, the underwriting margin on that program accrued to an outside carrier. Captives Insure structured a program that keeps it with the business that carries the risk.
Rather than cede both the exposure and its reward to the open market, Captives Insure designed a program in which the client's own captive assumes 100% of the per-occurrence layer, via the EmpoweredRE facility. Coverage is issued on A− (Excellent) AM Best rated non-admitted paper, and the net premium reinsures back to the client — $1,401,000 to fund losses and, in favorable years, to be retained as underwriting profit.
- Property, on non-admitted paper. A $10,000,000 per-occurrence limit on A− (Excellent) AM Best rated surplus-lines paper, suited to a large, catastrophe-exposed schedule.
- The captive assumes the full layer. With no third-party reinsurance above it, the captive retains 100% of the $10,000,000 per-occurrence limit, sitting above the insured's self-insured retentions.
- Peril-appropriate retentions. A $50,000 base self-insured retention applies to all-other-peril losses, while catastrophe perils — earthquake, named wind, and flood — carry their own percentage-based retentions.
- One turnkey structure. Fronting, trust administration, and claims coordination are consolidated through the EmpoweredRE program, keeping the barrier to entry low.
| Program Element | Amount |
|---|---|
| Net Premium Retained by the Captive | $1,401,000 |
| Total Insurable Value Protected | $912,311,876 |
| Per-Occurrence Property Limit Assumed | $10,000,000 |
| Base Self-Insured Retention per Occurrence | $50,000 |
Because the captive assumes 100% of the per-occurrence layer, the full margin on a well-performing property year stays with the business rather than a third-party carrier.
Scale and Diversification
More than $900 million in insured value across many regions diversifies catastrophe exposure, making a meaningful retained layer a considered risk rather than a single-site gamble.
The Right Market for the Risk
A large, catastrophe-exposed schedule is a natural fit for the surplus-lines market; A− rated non-admitted paper provides the flexibility it requires while the risk reinsures back to the captive.
Direct Claims Influence
As reinsurer of its own policies, the insured gains a direct hand in claims adjudication through the program's third-party administrator — controlling the ultimate cost of loss.
Profit Retention
Favorable years no longer benefit an outside carrier; underwriting profit and investment income on surplus accrue to the captive's shareholders.
By moving its catastrophe-exposed property program into a captive structure, the real estate holding company now recaptures $1.4 million into a vehicle it owns and controls — while assuming 100% of the $10,000,000 per-occurrence layer above its retentions. A large, well-diversified property spend becomes a source of retained profit rather than a pure cost of doing business.
Is Your Property Program the Right Fit for a Captive?
If your organization carries a large, well-diversified property schedule 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.