Finance, Investments, and Accounting
Most captive insurance company owners/directors have heard the terminology "special purpose vehicles" or "SPVs." However, many do not have a good working understanding of what these entities are. In this article, we provide a definition and identify several key attributes of SPVs.
Johnson Lambert recently released a new white paper on the revisions to Statement of Statutory Accounting Principles (SSAP) No. 65 regarding high deductible workers compensation policies. Any captive insurers using this type of policy need to be aware of the changes and their impact.
Steve McElhiney of EWI Re, Inc., discusses a time-tested approach to optimizing a single-parent captive insurance company and overlays this approach with key success factors that may be integrated to achieve long-term economic value and superior risk control attributes.
While the US Tax Court's "Avrahami" decision qualifies as a taxpayer loss, Tom Jones of McDermott Will & Emery finds positive elements to the decision. He says along the larger continuum of tax concerns relating to captives, the decision provides further clarity and should benefit larger captives.
Much has been shared, and many lessons can be learned from "Avrahami v. Comm'r" and "Feedback Ins. Co., Ltd. v. Comm'r," 149 T.C. 7 (2017). Jeremy and Richard Colombik provide their take on the lessons learned from the case.