Finance, Investments, and Accounting
State and local income taxes are an evolving issue that concerns captive insurers and that some states are challenging as they look for revenue.
Alan Fine of Brown Smith Wallace contemplates the conclusions reached and supporting rationale used by the US Tax Court in the second small captive case, "Reserve Mechanical Corp. v. Commissioner of Internal Revenue," and believes there are a few areas that continue to warrant discussion.
Captive.com recently caught up with a few members of Wilmington Trust's collateral team to find out about their expertise with collateral trusts and how it relates to the team's involvement in the insurance-linked securities (ILS) market. Read on to find out about the ILS market and ILS collateral.
Cash is king. This is especially true for captive insurers, since they typically have fewer margins for error. Captive board members should understand their captive's cash flow, so let's discuss some key areas for exploration and understanding.
Beware of what you wish for-captive insurers are impacted by inflation in a number of ways, and the results are typically not good. The benign inflation of the past 5 years may have led captive insurers to become complacent. Here is why you need to reexamine your inflation risk mitigation strategy.