Article

Domestic and International Property Challenges

A nearly loss-free Texas-based industrial client with both domestic and international exposures worked with C.I. to implement a captive solution for their property exposures. Even with excellent loss history and proper risk management strategies in place, the standard market still imposed rate increases year over year.

Property and General Liability Solution

Working with their property and casualty insurance broker, C.I. underwrote the policies according to the unique facts and circumstances surrounding the insured’s portfolio and operations. Utilizing C.I.’s turn-key structure, they were able to bind coverage prior to their captive being formed, allowing for them to comfortably make the insurance decision first, and the captive formation process after.   

Case details

• C.I. provided a primary property policy limit of $5m
• Policies issued on A+ AM Best, XV admitted paper with lender accepted deductibles
• Captive retained ~70% gross written premium (after 10% broker commissions)
• Transaction took ~60 days to implement

Solution Overview

• Net Savings (Y1)*:
  •  ~$600k
• Net Savings (Y5)*:
  •  ~$3M
• Captive Loss Fund:
  • ~70% of premium
• Capital Required:
  •  $25k
• Client owns and controls their captive 100%
• No risk sharing required