Finance, Investments, and Accounting
Why Cash Flow Is Key for Captive Insurers
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. Read More
Inflation: Captive Insurers, Beware of What You Wish for
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
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
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
Direct placement taxes apply to both surplus lines placements as well as placements with any nonadmitted company, such as a captive insurer. Read More