How a fronted general liability program returned ~80% of gross written premium to a wholly owned captive — with A-rated paper satisfying every contractual and statutory requirement
A large residential window installer operating in the state of Florida partnered with Captives Insure (C.I.) to restructure its general liability program around a wholly owned captive insurance company. The client carries a substantial general liability exposure inherent to residential construction and had historically ceded the full economics of that risk to the commercial market. Through a fronted captive structure, the client now retains ~80% of gross written premium within its own captive — capturing the underwriting result of a well-managed book of business while maintaining A-rated paper for its contractual and statutory obligations.
C.I. structured a fronted general liability program that positions the client's wholly owned captive to participate directly in the underwriting economics of its own risk, while ensuring the program satisfies all contractual and statutory requirements through AM Best-rated fronting paper.
The wholly owned captive is the mechanism that transforms this program from a conventional insurance purchase into a strategic risk financing tool. Rather than ceding the full premium to a commercial carrier and hoping for favorable renewal terms, the client retains the overwhelming majority of premium and participates directly in the underwriting result of its own risk.
Because the fronting carrier reinsures 100% of the risk back to the captive, the client retains ~80% of gross written premium net of frictional program costs. In a traditional placement, that premium would flow entirely to a commercial insurer with no opportunity for return — regardless of how favorably the client's own risk developed.
As sole owner of the captive, the client retains 100% of the underwriting profit — premium less losses and expenses — along with the investment income earned on reserves held in trust. A residential window installer with disciplined safety practices and a favorable loss history now benefits directly from that discipline instead of subsidizing the commercial market's aggregate results.
Key Advantage: The captive assumes the full program on rated paper. The client does not surrender participation to a quota share partner, yet still satisfies every contractual and statutory requirement through the AM Best-rated fronting carrier — a structure that aligns the client's capital with its own risk while preserving compliance without exception.
| Metric | Traditional Market | C.I. Captive Structure |
|---|---|---|
| Gross Written Premium | Paid to commercial carrier | ~80% retained in captive |
| Underwriting Profit | Retained by carrier | Retained by client's captive |
| Investment Income on Reserves | Earned by carrier | Earned by captive |
| AM Best Rated Paper | Yes | Yes — A- (Excellent) fronting |
| Contract & Statutory Compliance | Yes | Yes — fully satisfied |
| Control Over Program Economics | None | Full — 100% ownership |
C.I. provides turn-key captive insurance solutions that allow businesses to retain significant premium, 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.
SUBMIT A RISK