Captive Formation Process
1. FEASIBILITY
Our feasibility study includes:
- Cost-Benefit Analysis
- Tax Analysis
- Policy Analysis
- Captive’s Business Purpose Documentation
- Domicile Selection
- Captive Structure Selection
2. UNDERWRITING
We handle all underwriting processes, conducted by independent actuarial firms:
- Identifies under-insured and unidentified risk in your business
- Available lines of coverage and determines premiums
3. FORMATION
We handle the entire formation to ensure your Captive is compliant with regulatory, corporate, and tax requirements.
- Formation applications
- Incorporation articles & bylaws
- Tax ID Numbers
- Other reporting documentation
4. MANAGEMENT
We handle every aspect of operating a captive.
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Regulatory compliance
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Accounting & Banking
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Annual financials
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Captive reserve investments
- Policy and premium review
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Claims management
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Annual audits
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Tax compliance
Included in a Feasibility Study
We will guide you through this process so you have a thorough understanding of what your captive insurance company can accomplish.
Cost-Benefit Analysis
Multi-year cost benefit analysis to determine if the benefits are greater than the costs.
Tax Analysis
The tax analysis will identify tax incentives available under Section 831 and Section 162 of the Internal Revenue Code.
Policy Analysis
Identification of specific commercial property and casualty risks you are not currently insuring, that could be insured by your captive. (What Can be Covered) We will provide suggested coverage limits, premium rates and policy formation numbers for each line of insurance. All underwriting recommendations will follow the specific underwriting rules which are published in the Commercial Line Circular or Manual of each line.
Captive's Business Purpose Documentation
In order to satisfy IRS requirements, it’s important that a valid “business purpose” exist for creating the captive insurance company. Captive Nation will create all documentation of the Captives business purpose.
Domicile Selection
We will help you select the best domicile to incorporate, license, operate and manage your Captive.
Captive Structure Selection
We will help you select which captive structure will best meet your needs. This could include:
- Single Parent Captive
- Association Captive
- Group Captive
- Industrial Insurance Captive
- Rent a Captive
- Sponsored Captive
- Protected Cell Captive
- Segregated Cell Captive
- Affiliated Reinsurance Company (ARC)
- Producer Owned Reinsurance Company (PORC)
- Closely Held Insurance Company (CHIC)
- Owned Reinsurance Company (PORC)
- Closely Held Insurance Company (CHIC)
All Businesses Have Risk and Could Possibly Benefit from a Captive!
Industries that Can
Benefit from a Captive
Medical & Physicians
Manufacturers
Construction
Oil & Gas
Transportation
Wholesale
Auto
Retail
Professional Services
Our Management Services
Accounting
Our in-house accounting staff not only manages our client’s insurance companies from issuance of premiums to monthly financial reporting, it also assures suitable tax and audit treatment.
Compliance
Our in-house accounting staff not only manages our client’s insurance companies from issuance of premiums to monthly financial reporting, it also assures suitable tax and audit treatment.
Investment Strategies
Our experienced finance team is positioned to support all financial functions for maximizing investment returns.
Actuary
Our actuaries are experienced underwriters and will ensure that our clients’ captive insurance companies maintain proper financial solvency.
Audit
Our banking professionals will meet unique needs and are well-versed in complex international transactions. They will also assist in establishing accounts in well-known financial institutions.
Claims Management
We work with our clients to establish custom-tailored risk funding structures to create the highest possible level of asset protection. We also assist our clients in paying claims and aggressively defending actions.