Finance, Investments, and Accounting

Inflation: Captive Insurers, Beware of What You Wish for

May 10, 2018

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. Read More


Expected Adverse Development as a Measure of Risk Distribution

April 25, 2018

Risk distribution is a prerequisite for an insurance transaction to be deemed to have occurred and therefore achieve deductibility of premium for tax purposes. Captive owners seeking to determine whether their captive has sufficient risk distribution have a new methodology to consider in expected adverse development. Read More


5 Questions Concerning Your Captive's Asset Allocation Model

April 4, 2018

Given recent changes in investment markets, captive insurers should take another look at their asset allocation models. A recent Strategic Asset Alliance presentation presents five potential shortcomings in assets allocation models and five key questions to ask your investment manager concerning their asset allocation model. Read More


Captive Insurance and Direct Placement Taxes Explained

March 12, 2018

Direct placement taxes apply to both surplus lines placements as well as placements with any nonadmitted company, such as a captive insurer. Read More


Insights into the Avrahami and Feedback Decision

March 12, 2018

The US Tax Court decided two cases, Avrahami v. Commissioner and Feedback v. Commissioner, and the formation and operation of a captive insurer. Read More