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C.I. Renews $2.5m+ Property and General Liability Client - Case Study

3/24/2025

C.I. Renews +$2.5m Property and General Liability Client

A large residential property client worked with C.I. to procure a $2.5m Property Policy along with a $400k/$5m General Liability Policy. With over $1bn in total insured values and 10k+ units this client retained 85% of the premium back into their captive on AM Best Rated A+XV Admitted paper.

Key Components

Excess Liability Structure

  • Layer: C.I. provided a $2.5 million property policy and a $400k per occurrence / $5m aggregate general liability policy
  • GWP: +$2.5
  • Risk Retention: The captive retains 100% of the risk in exchange for the 85% of the premium
  • AM Best Rating: Policies are issued on A+ XV Admitted paper, ensuring lender confidence in financial stability

Captive Participation

  • The captive’s full participation in the risk of the captive layer allows for the most premium to be retained. This insured manages its risk exceptionally with the last two renewals resulting in $0 in property claims.   

Financial Impact

  • Loss Ratio: With no property losses in the captive, and ~30% for general liability, this client has retained over $7m in premium over the last three years
  • Underwriting Profit: Premiums retained in the captive (over $7 million over the last three years) directly reduce the client’s net cost of risk. By contrast, in traditional markets, these premiums would be a sunk cost never to be seen again

With significant NATCAT exposure in this residential real estate portfolio, the insured was continuously punished in the commercial market for poor performers unrelated to their operations, forcing them into higher retentions, unfavorable terms, and significant rate increases.  

C.I. was able to provide a turn-key captive solution for this insured that allowed them to retain significant premiums, control, and underwriting profit within their captive insurance company, all while providing A Rated paper to satisfy all contractual requirements. Reach out to C.I. today and see if your business may be the right fit for a captive arrangement for no up front cost. 

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