Finance, Investments, and Accounting

Why Cash Flow Is Key for Captive Insurers

May 17, 2018

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

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


2018 Musings on Captive Insurer Investments

January 24, 2018

What does 2018 have in store for captive insurer investments? We look at investment return assumptions and new accounting regulations. We also suggest some questions that should be raised by the captive board members concerning the investment portfolio. Read More