A bespoke captive structure delivers rate decreases on both lines and ~$4M in retained gross written premium for a Florida affordable housing portfolio
A Florida-based residential affordable real estate client with $1 billion in total insurable value partnered with Captives Insure (C.I.) to renew a $60 million primary property policy and a $15 million excess general liability policy. Leveraging a historical property loss ratio under 4% and a loss-free excess liability layer, C.I. secured a meaningful rate reduction for the property and a flat renewal for their excess general liability even with the continued strained rate environment across liability and coastal property lines. Through a bespoke captive structure, the client recaptures millions that would otherwise be spent in the standard market and retained approximately $4 million in gross written premium this year alone.
By leveraging the client's strong loss history and disciplined risk management, C.I. provided a meaningful rate decreases on the primary $60M property layer and a flat renewal the $15M excess liability layer. A property loss ratio under 4% and a loss-free liability tower gave the client the most favorable terms. The result gives them an optimal rate environment, even with increasing rates across liability lines and coastal property.
Market context: In 2026, non-coastal buyers with clean loss histories are capturing significant rate reductions as property and casualty carriers compete more aggressively, however, coastal property has still been strained across stick-frame habitational exposures. Liability lines have been even more strained with significant rate hikes across the board. Even with coastal exposures and a large excess liability policy, this insured continues to outperform the market and are insulated from commercial rate increases.
The bespoke captive allows the client to recapture millions in premium that would otherwise flow to the commercial market. Retained premiums can be invested, building surplus and providing a buffer against future claims. The captive also enables tailored coverage and direct influence over claims management, reducing total cost of risk and supporting more predictable budgeting.
Policies were issued on A+ AM Best, XV admitted paper, meeting lender and regulatory requirements while preserving deductible flexibility. This fronting arrangement combines the security of an admitted carrier with the financial advantages of captive participation—a structure increasingly favored by institutional real estate owners.
Retention of underwriting profit and investment income strengthens the balance sheet and supports long-term growth.
Direct oversight of claims and risk management aligns insurance outcomes with operational performance.
Rate reductions on both lines compound year over year, freeing up capital for reinvestment in core business activities.
The captive buffers against insurance market fluctuations, enabling stable and predictable risk financing.
Outcome: This case demonstrates how a sophisticated captive strategy, paired with expert negotiation and market insight, delivers rate reductions across multiple lines and substantial financial benefits for large real estate portfolios in today's evolving insurance landscape.
C.I. provides turn-key captive insurance solutions that allow businesses to retain significant premiums, control, and underwriting profit within their own captive insurance company — all while providing A-rated paper to satisfy every contractual requirement.
Reach out to C.I. today for a no-cost evaluation of your program.
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