Captive Insurance Run-Off Programs
Minimize costs, maximize returns.
Captives today are not only an alternative risk transfer solution among Fortune 1000 and 500 companies but also for middle-market and smaller organizations. At Artex, we are at the forefront of developing creative captive solutions and are intimately involved throughout the captive lifecycle – from assessing the feasibility of a new captive insurance arrangement to the ongoing management of a captive to the closure of discontinued legacy captive business. There are many reasons why an organization may choose to close its captive: the desire to eliminate the variability and volatility of long-tail liabilities, a change in company direction or market focus, rationalization in the aftermath of a merger, or the result of regulatory developments. Regardless of why clients seek to run-off and exit their captive arrangement, Artex and our team of captive experts are available to help manage the process in the most efficient and cost-effective manner.
There are several options available to the captive owner, depending on the structure of the entity and the requirements of the domicile in which it is located. These options include a novation or loss portfolio transfer of all or a portion of the captive’s business, commutation, restructuring of liabilities and bringing finality to a book of claims – usually with fronting insurance or a reinsurer. Our expertise lies in managing the option that the client chooses.
We have experience in assisting entities with a captive in run-off by novating contracts into a protected cell to reduce vehicle run-off expenses. We can manage the captive through the liquidation process and reduce the amount of parent company management time by transferring the insurance risks into a protected cell.
Alternatively, we can provide asset management with access to investment management firms in Guernsey and the UK to help maximize the use of assets to meet claim obligations while boosting returns. We can also manage a client’s liabilities to wind down the captive in an orderly way until the end and to settle all interests of the insured. This is an excellent option for shareholders with an average risk appetite and return on capital and who can set fairly realistic claim resolutions.
Work With Artex
- Access to an arsenal of strategies to effectively manage the run-off and generate reasonable returns for investors
- Ability to reduce operational costs and accelerate the process of claims in order to close the company
- Assistance with containing liability
- Best-in-class service
- Payment can be on commission or a straight fee