
Captives.Insure reveals details of latest partnership
Captives.Insure has announced that it partnered with a large specialty construction company to secure $5 million in excess liability coverage above a $15 million primary layer.
The client, who was not named, retains over $2.5 million in gross written premium (GWP) within their captive while satisfying lender requirements. With a 0% historical loss ratio in this excess layer, the client now retains underwriting profits that were previously absorbed by commercial insurers.
The captive’s quota share position allows it to retain premiums that would otherwise flow to commercial insurers, the quota share position allows them the option to not take 100% of the risk, while still participating in the underwriting profit
With no historical claims in this layer, the captive retains 100% of the underwriting profit (premiums minus losses/expenses).
According to Captives.Insure premiums retained in the captive (over $2.5 million) 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
Captives.Insure said that it 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.
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