Rent-a-Captive Solutions

Rent-a-captive is a facility whereby a client (sponsor) ‘rents’ the capital of a registered insurer to underwrite insurance business.

No risk is retained in the rent-a-captive facility therefore all risks must be fully collateralized by premium, additional capital contributions, reinsurance or letter of credit.

Benefits

  • Segregated account for a client’s stand-alone insurance program
  • Underwriting profits determined by own loss experience
  • No pooling of risks with other segregated accounts
  • Robust legislation ensures that one account cannot attach to the assets and liabilities of another account.

Common Uses

  • Single line¬†deductible¬†reimbursement
  • Medical stop loss
  • Single parent risks that are too small for stand-alone captive