7 March 2023Reinsurance

Realty Group picks up CICA outstanding captive award 2023

A real estate investment trust has won the Captive Insurance Companies Association (CICA)’s outstanding captive award 2023 for a captive-centric approach that proved to be invaluable during a merger.

The winner, Kite Realty Group (KRG), was praised by CICA for putting its captive front and centre when it structured its insurance program. This decision was more than validated when KRG merged with Retail Properties of America (RPA) in October 2021, increasing KRG’s portfolio by 60 percent as well as adding significant catastrophe exposure in the middle of a challenging insurance market.

This award recognises a captive insurance company or risk retention group that has shown creative uses for a captive, been successful in managing it, has prevailed in difficult times and has gained acceptance, recognition, and a positive reputation among the captive community.

CICA said that KRG’s captive enabled “major corporate changes related to the merger… [to be made] seamlessly” and provided KRG with more options. “[The use of] their captive gave KRG flexibility when building out their coverage tower and illustrated to the underwriters their commitment to risk management, as they were willing to take a strategic and creative approach to risk.”

With the merger, it was important to KRG to develop a data-driven, captive-centric program which meant they took the time they needed to conduct proper due diligence and maintained the legacy captive programs of both KRG and RPA until a combined program could be created.

“The Kite Realty Group organisation and I are extremely honoured,” said Theresa Severson, vice president, insurance & risk management at Kite Realty Group. “For me, this award acknowledges the support that the KRG leadership has provided throughout the process, and the importance of building a culture that focuses on risk management and creative risk financing alternatives.”