9 June 2014USA analysis

Sage supports Texas captive growth with board appointment

Sage Advisory Services has announced that Josh Magden has been appointed to the board of directors of the Texas Captive Insurance Association.

The appointment underlines the recently formed associations’ expanded efforts to promote and support the growth of the captive industry in Texas.

“The advent of captive insurance capability in Texas enabled by SB 734 is a momentous development for Texas businesses,” says Bob Smith, president, chief investment officer and co-founder of Sage. “Having long worked with captives, we are strong advocates of self-insurance and the control that a captive gives its parent company over risk management, managing economic capital vis-à-vis insurance spend and gaining better access to reinsurance markets and bespoke coverages. Truly, the captive insurance construct represents the take-the-bull-by-the-horns, entrepreneurial ethos that has built much of the Texas economy.”

The bill was signed into law by the governor last summer, and TxCIA was established to support and promote the Lone Star State’s capability amidst a growing number of domestic captive domicile choices.

“There is exciting work ahead for the association in terms of promoting Texas as a domicile,” says Magden. “It’s also important for the association to ensure that the future evolution of Texas captive legislation permits the full range of the Texas industry to take advantage of the captive structure. There are literally hundreds of small and medium-sized businesses in the oil and gas, technology and construction industries here in Texas for whom the captive structure has broad applicability.”