First and foremost a captive insurance company is a formalized structure used to meet a business need unique to the owner, shareholder, or participant.
These business needs may require an insurance, reinsurance, or self-insurance solution or they may require a special purpose financial structure to accomplish the objective.
The following illustrates sample solutions including programs, coverages and exposures that Tom has designed and implemented to meet the needs of clients using captive insurance structures, risk retention groups, or risk purchasing groups.
Structures and solutions developed by Tom include:
- Established and Directed Capital Risk Alternatives PCC, LLC. taking advantage of structural opportunities through the use of an incorporated protected cell facility to provide business solutions and insurance funding and financing structures to clients. In support of Capital Risk provided financial, analytical, structural, and operational consulting services to clients and prospects seeking special purpose vehicles, strategic risk financing opportunities including micro captives and 831(b) facilities, strategic capital solutions, or formalized insurance structures that may provide certain long-term funding and or planning benefits.
- Formed Chatham Atlantic Re, a Bermuda Non Controlled Foreign Corporation (NCFC) single parent captive insurance company to handle run off programs from agency acquisitions including E&O risk, and legacy Legion Insurance programs. Set up the “MGU” program with a national carrier and was responsible for underwriting, state and regulatory filings, prepared and processed monthly bordereau, oversaw claims audits, etc.
- In 2000 created one of the original risk retention groups owned by a leading hospital to work in concert with it’s Cayman captive to meet statutory requirements for admitted professional liability coverage.
- Restructured the reinsurance placement for a Fortune 500 organization to flow through domestic captive instead of foreign captive saving organization nearly $1,000,000 in Federal Excise Taxes.
- Physician organization was seeking a method to reward its senior partners; developed a structure that allowed the partners to set up a single parent captive taking the 831(b) election which allowed them to collectively assume underwriting risk on their professional liability and return underwriting profit in a tax efficient manner.
- National manufacturer was seeking a program that would allow its end user affordable insurance while at the same time promoting safety and good business practices by this same group. Designed a foreign single parent captive that allowed this corporation to capitalize the facility and then own the voting shares of the company while the end user owned the B shares which allowed profit sharing based on multiple metrics. A master program was designed to sit over the captive funding layer backed by the manufacturer’s balance sheet and the captive funding layer.