CITINBRIEF Latest news
Lee Â Memorial Â Health Â System Â leans Â towards Â captive Â model Â after Â $15 Â million Â payout Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â
Proposed Â reform Â of Â 1941 Â US Â defence Â act Â could Â create Â captive Â insurer Â
Florida lures captive insurance companies with new law TALLAHASSEE Â 05.07.2012
Kane Â Malta Â celebrates Â moving Â its Â operations Â to Â new Â premises Â in Â Zebbug Â with Â opening Â party Â Â
Jason Â Flaxbeard Â and Â Matthew Â Takamine Â RI FRQVXOWLQJ ÂżUP %HHFKHU &DUOVRQ WDON captive Â insurance
$ QHZ ODZ WKDW ORZHUV FDSLWDO UHTXLUHPHQWV DQG LV â€œWe Â welcome Â captive Â insurers Â to Â Floridaâ€™s Â insurance Â predicted Â to Â boost Â captive Â insurance Â business Â in Â the Â marketplace. Â The Â new Â law Â will Â encourage Â the Â formation Â US Â State Â of Â Florida Â became Â effective Â on Â 1 Â July. of Â new Â captive Â insurers, Â which Â will Â promote Â increased Â in-Â vestment Â in Â our Â insurance Â marketplace. Â I Â thank Â governor Â Florida Â captive Â insurance Â legislation Â became Â effec-Â Scott Â for Â signing Â this Â bill Â and Â the Â Florida Â legislature Â for Â tive Â in Â 1982, Â but Â the Â state Â currently Â hosts Â no Â captive Â passing Â this Â important Â piece Â of Â legislation,â€? Â said Â Kevin Â insurers. Â Up Â until Â this Â point, Â state Â law Â allowed Â for Â the Â McCarty, Â Floridaâ€™s Â insurance Â commissioner. creation Â of Â captive Â insurers Â and Â industrial Â insured Â captive Â insurance Â companies. The Â legislation Â aids Â the Â formation Â of Â captive Â insurers Â in-Â terested Â in Â providing Â various Â types Â of Â property Â and Â casu-Â During Â a Â 2012 Â regular Â legislative Â session, Â the Â Florida Â DOW\LQVXUDQFH/LIHDQGKHDOWKLQVXUDQFHDUHVSHFLÂżFDOO\ legislature Â passed Â Committee Â Substitute Â for Â House Â excluded Â from Â the Â permissible Â uses Â of Â a Â captive Â insurer. Â Â Bill Â 1101. Â Floridaâ€™s Â governor, Â Rick Â Scott, Â signed Â the Â bill Â into Â law Â on Â 24 Â April Â 2012. It Â could Â have Â a Â positive Â economic Â impact Â in Â Florida Â through Â ,W VSHFLÂżHV FULWHULD IRU WKH IRUPDWLRQ LQFRUSRUDWLRQ the Â costs Â and Â fees Â that Â are Â associated Â with Â the Â legisla-Â coverage, Â capital Â and Â surplus, Â reporting, Â licensure Â WLRQÂśV YDULRXV FDSWLYHVSHFLÂżF UHTXLUHPHQWV VXFK DV and Â reinsurance Â of Â captive Â insurers. state Â licensing, Â maintenance Â of Â a Â principal Â place Â of Â busi-Â
Malta Â turns Â to Â innovation Â as Â a Â means Â of Â dif-Â ferentiating Â its Â captive Â offering Â after Â acces-Â sion Â to Â the Â EU
CEO Â of Â Capstone Â Associated Â Services, Â 6WHZDUW)HOGPDQGLVFXVVHVWKHEHQHÂżWV of Â a Â Caribbean Â domicile Â
Gero Â Michel Â at Â Montpelier, Â McNamara Â and Â Le Â Page Â at Â Kane, Â Sidney Â Williams Â at Â Strategic Â Risk Â Solutions Â and Â more...
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ACE Â updates Â platform Â with Â captive Â tracking
MDS Â Group Â launches Â protected Â cell Â company Â
The Â ACE Â Group Â has Â updated Â its Â Worldview Â platform Â after Â suggestions Â from Â clients Â and Â brokers.
European Â and Â Latin Â American Â insurance Â and Â reinsurance Â brokerage Â MDS Â Group Â has Â launched Â a Â Protected Â Cell Â Company Â (PCC).
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readmore Â p2
NewsInBrief Florida Â lures Â captive Â insurance Â companies Â with Â new Â law Continued Â from Â page Â 1
ness Â in Â Florida Â or Â maintenance Â of Â the Â branch Â op-Â erationâ€™s Â principal Â place Â of Â business Â in Â Florida. ,W DOVR UHTXLUHV FDSWLYH LQVXUHUV WKDW DUH based Â in Â Florida Â to Â hold Â at Â least Â one Â annual Â board Â meeting Â in Â the Â state Â and Â appoint Â a Â reg-Â istered Â resident Â agent Â to Â act Â on Â their Â behalf Â in Â Florida. Â According Â to Â Captive Â Insurance Â Companies Â $VVRFLDWLRQ ÂżJXUHV D FDSLWDO UHTXLUHPHQW RI $100,000 Â is Â needed Â for Â pure Â captives Â in Â the Â state, Â and Â $200,000 Â for Â industrial Â insured Â captives. Â &DSWLYHUHLQVXUDQFHFRPSDQLHVDUHUHTXLUHG to Â have Â a Â minimum Â of Â the Â greater Â of Â $300 Â million Â or Â 10 Â percent Â of Â reserves Â in Â capital Â and Â surplus. $V IRU ORFDO RIÂżFH UHTXLUHPHQWV SXUH FDS-Â WLYHV DUH UHTXLUHG WR KDYH PLQLPXP VXUSOXV of Â $150,000 Â while Â industrial Â insurers Â that Â are Â LQFRUSRUDWHGDVVWRFNFRPSDQLHVDUHUHTXLUHG to Â have Â $300,000 Â in Â minimum Â surplus. Â Indus-Â trial Â insured Â captives Â that Â are Â incorporated Â as Â PXWXDOLQVXUHUVDUHUHTXLUHGWRKDYHDWOHDVW $500,000 Â in Â surplus. â€œWe Â are Â driven Â to Â respond Â to Â the Â needs Â of Â our Â clients Â and Â brokers Â in Â the Â multinational Â insur-Â ance Â market, Â and Â captive Â premium Â payment Â tracking Â represents Â the Â third Â round Â of Â invest-Â ment Â in Â the Â ACE Â Worldview Â tool, Â to Â be Â followed Â Approximately Â 30 Â jurisdictions Â have Â enacted Â by Â many Â more,â€? Â said Â Tim Â Benson, Â senior Â vice Â captive Â insurance Â laws Â over Â the Â past Â de-Â president Â at Â ACE Â Multinational Â Client Â Group. cade, Â with Â one Â of Â the Â distinguishing Â features Â of Â the Â various Â laws Â being Â the Â premium Â tax Â MDS Â Group Â launches Â protected Â rate Â that Â is Â charged. Â The Â state Â faces Â stiff Â competition Â for Â cap-Â tive Â insurance Â business Â from Â dozens Â of Â US Â states, Â including Â Vermont, Â Delaware, Â South Â Carolina, Â Hawaii, Â Missouri Â and Â Montana. Â
cell Â company Â
9HUPRQW ZDV RQH RI WKH ÂżUVW VWDWHV WR HQDFW a Â captive Â law, Â and Â charges Â a Â sliding Â scale Â tax Â based Â on Â the Â amount Â of Â premiums Â that Â the Â cap-Â WLYHFROOHFWV7HQQHVVHHXVHVDĂ€DWUDWHRISHU-Â cent Â of Â gross Â premiums Â that Â are Â collected. Â The Â Florida Â law Â provides Â for Â a Â premium Â tax Â rate Â of Â 1.75 Â percent Â on Â gross Â premium Â receipts.
Continued Â from Â page Â 1
Hospital Â spokeswoman Â Mary Â Briggs Â said Â that Â a Â third Â alternative, Â the Â captive Â model, Â would Â mean Â â€œalleviating Â the Â middle Â manâ€?, Â whether Â it Â meant Â forming Â an Â insurance Â company Â and Â paying Â premiums Â to Â the Â internal Â company, Â or Â joining Â a Â group Â that Â has Â an Â existing Â captive Â in-Â surance Â group. Richard Â Akin, Â Lee Â Memorialâ€™s Â board Â chairman, Â added Â that Â the Â boardâ€™s Â current Â preference Â for Â the Â captive Â model Â may Â alter Â after Â going Â through Â the Â costs.
A Â statement Â from Â MDS Â said Â that Â HighDome Â PCC Â will Â simplify Â the Â captive Â concept Â that Â is Â used Â by Â large Â â€œThe Â biggest Â reason Â for Â trying Â to Â pursue Â the Â corporations, Â enabling Â organisations Â to Â reduce, Â and Â captive Â model Â is Â we Â have Â heard Â you Â can Â buy Â have Â long-Âterm Â stability Â in, Â their Â insurance Â costs. reinsurance Â for Â up Â to Â 30 Â percent Â less Â but Â it Â is Â ULVNVSHFLÂżF<RXPXVWGHÂżQH\RXUULVNÂ´KHVDLG HighDome Â will Â primarily Â target Â medium-Âsized Â â€œFor Â a Â company Â the Â size Â of Â Lee Â Memorial, Â I Â think Â enterprises Â and Â larger Â organisations Â with Â an Â potentially Â it Â could Â save Â a Â lot Â of Â money. Â I Â donâ€™t Â ACE Â updates Â platform Â with Â individual Â strategic Â risk. Â It Â is Â a Â 100 Â percent Â sub-Â know, Â but Â that Â will Â drive Â our Â decision.â€? sidiary Â of Â MDS Â Group Â and Â is Â fully Â authorised Â captive Â tracking and Â regulated Â by Â the Â Malta Â Financial Â Services Â Continued Â from Â page Â 1 Authority Â to Â conduct Â both Â insurance Â and Â reinsur-Â TPCC Â looks Â positive, Â says Â A.M. Â Best The Â platform, Â which Â enables Â risk Â managers Â ance Â business Â in Â short Â tail Â risks. and Â their Â brokers Â to Â monitor Â and Â manage Â their Â A.M. Â Best Â has Â revised Â the Â outlook Â of Â Cana-Â multinational Â insurance Â programs, Â now Â in-Â Lee Â Memorial Â leans Â towards Â da-Âbased Â Transportation Â Property Â and Â Ca-Â cludes Â captive Â premium Â payment Â tracking Â for Â sualty Â Company Â (TPCC) Â from Â stable Â to Â posi-Â captive Â model Â both Â locally Â and Â centrally Â invoiced Â multinational Â tive Â and Â affirmed Â its Â financial Â strength Â rating Â insurance Â programmes. as Â â€œA-Ââ€œ Â (â€œExcellentâ€?) Â and Â issuer Â credit Â rating Â The Â Lee Â Memorial Â Health Â System Â is Â considering Â as Â â€œa-Ââ€?. The Â new Â captive Â premium Â enhancements Â to Â a Â captive Â insurance Â model Â to Â safeguard Â itself Â Worldview Â include Â premium Â tracking, Â which Â al-Â against Â payouts Â such Â as Â the Â $15 Â million Â claims Â lows Â users Â to Â follow Â the Â collection Â of Â premium Â bill Â that Â it Â had Â to Â settle Â earlier Â this Â year. TPCC Â is Â a Â pure Â captive Â insurance Â company Â that Â payments Â across Â ACEâ€™s Â global Â network, Â and Â provides Â automobile Â physical Â damage, Â general Â reinsurance Â summary, Â which Â tracks Â the Â status Â Traditional Â insurance Â is Â also Â on Â the Â cards, Â from Â liability Â and Â property Â insurance Â coverage Â for Â of Â reinsurance Â payments Â to Â the Â captive Â and Â re-Â Chartis, Â with Â a Â $1.2 Â million Â premium Â to Â AWAC/ TransLink Â (the Â South Â Coast Â British Â Columbia Â Torus, Â with Â a Â $952,000 Â premium. insurance Â panel. Transportation Â Authority).
NewsInBrief Its Â ratings Â are Â based Â on Â its Â â€œexcellentâ€? Â capitali-Â Five Â title Â underwriters Â form Â sation Â and Â operating Â performance, Â and Â a Â strong Â enterprise Â risk Â management Â programme, Â said Â alliance Â with Â Lloydâ€™s $0%HVW,WDGGHGWKDWÂłLQXULQJWRWKHEHQHÂżWRI WKHUDWLQJVLVWKHFDSWLYHÂśVIDYRXUDEOHSURÂżOHDV Five Â title Â underwriters Â have Â formed Â a Â reinsur-Â part Â of Â TransLinkâ€?. ance Â alliance Â with Â Lloydâ€™s Â of Â London. TPCC Â has Â demonstrated Â its Â â€œusefulness Â and Â ef-Â fectivenessâ€? Â to Â TransLink Â over Â many Â years Â as Â LW SURYLGHV Ă€H[LELOLW\ IRU LQVXUDQFH SURJUDPPH VWUXFWXULQJ DQG VXEVWDQWLDO LQVXUDQFH FRVW HIÂż-Â ciencies, Â added Â the Â ratings Â agency. A.M. Â Best Â said Â that Â TPCCâ€™s Â ratings Â could Â im-Â prove Â if Â it Â maintains Â a Â stable Â underwriting Â perfor-Â mance Â and Â reduced Â overall Â net Â exposure Â over Â the Â next Â few Â years. â€œFactors Â that Â could Â lead Â to Â a Â negative Â outlook Â or Â a Â downgrading Â of Â the Â companyâ€™s Â ratings Â are Â a Â material Â loss Â of Â capital Â from Â either Â claims Â or Â investments, Â a Â reduced Â level Â of Â capital Â that Â does Â not Â support Â the Â ratings Â or Â an Â increase Â in Â net Â retention.â€? â€œTPCCâ€™s Â ratings Â are Â somewhat Â linked Â to Â the Â rating Â of Â TransLink;Íž Â therefore, Â unfavourable Â op-Â erating Â performance Â or Â material Â loss Â of Â capital Â could Â result Â in Â changes Â to Â the Â captiveâ€™s Â ratings.â€?
The Â American Â Title Â Reinsurance Â Alliance Â (ATRA) Â was Â formed Â to Â ensure Â that Â the Â partici-Â pating Â companies Â have Â a Â secure Â source Â of Â rein-Â surance Â for Â large Â transactions.
Demotech Â president Â Joseph Â Petrelli Â said: Â â€œLloydâ€™s Â of Â London Â has Â a Â legendary Â track Â record Â of Â backing Â up Â its Â promises. Â Members Â of Â ATRA Â ZLOOOLNHO\SDVVRXUUHLQVXUDQFHUHYLHZZLWKĂ€\-Â ing Â colours.â€?
Former Â E.W. Â Blanch Â employees Â form Â new Â business
Dan Â Koshiol, Â formerly Â of Â Guy Â Carpenter Â & Â Co., Â John Â B. Â Collins Â and Â Associates Â and Â E.W. Â Blanch Â The Â participating Â title Â underwriters Â are: Â Agents Â Company, Â has Â formed Â new Â company Â StoneHill Â National Â Title Â Insurance Â Company, Â Missouri;Íž Â Reinsurance Â Partners. Alliant Â National Â Title Â Insurance Â Company, Â Colorado;Íž Â Attorneysâ€™ Â Title Â Guaranty Â Fund Â of Â Koshiol, Â a Â 15-Âyear Â veteran Â of Â major Â reinsur-Â Colorado, Â Colorado;Íž Â Connecticut Â Attorneys Â DQFHEURNHUDJHÂżUPVLVMRLQHGLQWKHYHQWXUH Title Â Insurance Â Company, Â Connecticut;Íž Â and Â by Â Lindsay Â Ginter, Â senior Â vice Â president, Â who Â Security Â Title Â Guarantee Â Corporation Â of Â Bal-Â also Â held Â positions Â at Â Collins Â and Â E.W. Â Blanch, Â timore, Â Maryland. most Â recently Â managing Â a Â reinsurance Â captive Â for Â Wells Â Fargo. Rich Â Patterson, Â the Â president Â of Â Connecticut Â At-Â torneys Â Title Â Insurance Â Company, Â said: Â â€œThis Â programme Â enhances Â our Â ability Â to Â insure Â large Â â€œWe Â see Â a Â marketplace Â need Â for Â a Â broker Â who Â transactions Â while Â reducing Â our Â exposure Â to Â loss.â€? will Â solely Â invest Â time Â and Â resources Â on Â their Â cli-Â ents,â€? Â Koshiol Â said. Â â€œAs Â brokers Â consolidate Â and Â â€œIn Â addition, Â it Â allows Â us Â to Â obtain Â reinsur-Â look Â for Â additional Â revenue Â growth, Â some Â clients Â ance Â on Â very Â favorable Â terms. Â This Â will Â en-Â are Â being Â asked Â to Â purchase, Â at Â an Â added Â cost, Â able Â us Â to Â be Â more Â competitive Â for Â multi-Âmil-Â products Â and Â services Â which Â historically Â have Â lion Â dollar Â transactions.â€? been Â included Â in Â the Â brokerage Â relationship.â€?
AMS Insurance Management
Corporate Services Trust Services Mutual Fund Services
The AMS Insurance Division is comprised of a
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operates as a licensed insurance manager in two key domiciles, the British Virgin Islands and Nevis.
turnkey approach to your captive insurance requirements.
The Insurance Division at AMS provides a comprehensive range of services to captive
If you require any assistance please contact: Derek Lloyd (email@example.com)
insurance companies from the initial feasibility study, through to license approval and the
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subsequent management and compliance functions once the license has been approved.
AMS British Virgin Islands +1 284 494 3399 firstname.lastname@example.org
AMS Hong Kong +852 2147 2108 email@example.com
AMS London +44 20 7488 2782 firstname.lastname@example.org
AMS Nevis +1 869 469 2676 nevis@amsbvi
New Â US Â bill Â could Â create Â captive Â insurer
A Â House Â Oversight Â and Â Government Â Reform Â Committee Â investigation Â also Â found Â that Â in-Â surance Â companies Â providing Â insurance Â un-Â GHUWKH'HIHQVH%DVH$FWLQ,UDTDQG$IJKDQ-Â Proposed Â reform Â of Â the Â US Â Defense Â Base Â Act Â istan Â have Â made Â underwriting Â profits Â that Â are Â insurance Â programme Â would Â create Â a Â captive Â significantly Â higher Â than Â those Â of Â traditional Â insurer Â to Â cover Â defence Â contractor Â employees. workersâ€™ Â compensation Â insurers, Â according Â to Â the Â committee. Elijah Â Cummings, Â who Â is Â the Â US Â Representa-Â tive Â for Â the Â State Â of Â Marylandâ€™s Â 7th Â congres-Â â€œThere Â is Â absolutely Â no Â reason Â American Â tax-Â sional Â district, Â proposed Â the Â Defense Â Base Â payers Â should Â be Â lining Â the Â pockets Â of Â private Â Act Â Insurance Â Improvement Â Act Â of Â 2012 Â to Â insurance Â companies,â€? Â said Â Cummings. Â â€œThis Â the Â House Â Oversight Â and Â Government Â Reform Â bill Â would Â save Â billions Â of Â dollars Â while Â improv-Â Committee, Â of Â which Â he Â is Â the Â ranking Â member, Â ing Â the Â ability Â of Â contractor Â employees Â who Â risk Â their Â lives Â in Â war Â zones Â to Â obtain Â the Â medical Â in Â early Â June. care Â and Â support Â they Â deserve.â€?
More Â than Â 40 Â local Â dignitaries Â and Â representa-Â tives Â from Â local Â and Â international Â businesses Â in Â Malta, Â as Â well Â as Â members Â of Â Kaneâ€™s Â senior Â executive Â team, Â including Â Kane Â groupâ€™s Â CEO Â Simon Â Hinshelwood, Â attended Â an Â opening Â party Â that Â was Â held Â to Â celebrate Â the Â occasion. Kaneâ€™s Â team Â of Â practitioners Â in Â Malta Â provides Â a Â range Â of Â life, Â pension Â and Â insurance Â (LPI) Â administration Â and Â captive Â insurance Â manage-Â ment Â services. 7KH QHZ RIÂżFH LV ORFDWHG LQ WKH &HQWUDO %XVL-Â ness Â Centre, Â Mdina Â Road, Â Zebbug, Â Malta.
Graziella Â Vella, Â the Â managing Â director Â of Â Kane Â (Malta), Â said: Â â€œThe Â new Â premises Â provide Â us Â with Â an Â excellent Â platform Â not Â only Â to Â continue Â to Â deliver, Â but Â also Â to Â enhance Â and Â expand Â our Â range Â of Â LPI Â and Â captive Â management Â services. Â To Â support Â our Â efforts Â to Â achieve Â this, Â we Â expect Â The Â defence Â and Â labour Â departments Â would Â to Â announce Â a Â number Â of Â new Â appointments Â to Â have Â 12 Â months Â from Â enactment Â of Â the Â bill Â to Â our Â team Â in Â the Â coming Â months.â€? A Â 2009 Â US Â Pentagon Â study Â found Â that Â $250 Â mil-Â implement Â a Â captive Â insurance Â programme. lion Â a Â year Â could Â be Â saved Â if Â a Â government Â self-Â Hinshelwood Â added: Â â€œMalta Â plays Â a Â key Â role Â in Â insurance Â programme Â was Â used Â instead Â of Â the Â the Â overall Â strategic Â goals Â of Â Kane. Â We Â have Â an Â 1HZRIÂżFHIRU.DQHLQ0DOWD existing Â one. extremely Â dedicated Â team Â here Â which Â encom-Â The Â Defense Â Base Â Act, Â which Â was Â enacted Â LQ UHTXLUHV GHIHQFH FRQWUDFWRUV WR SXU-Â chase Â workersâ€™ Â compensation Â insurance Â for Â employees Â who Â work Â overseas Â from Â private Â insurance Â companies. Â This Â allows Â contractors Â and Â insurance Â companies Â to Â negotiate Â their Â own Â rates.
The Â study Â said: Â â€œIn Â the Â long Â run, Â the Â self-Âinsur-Â ance Â alternative Â may Â have Â the Â greatest Â poten-Â tial Â for Â minimising Â Defense Â Base Â Act Â insurance Â costs, Â and Â it Â has Â several Â administrative Â and Â compliance Â advantages Â as Â well.â€?
Cummingsâ€™s Â bill Â would Â make Â the Â defence Â and Â labour Â departments Â establish Â a Â self-Âinsurance Â programme Â in Â which Â the Â government Â would Â pay Â GLUHFWO\IRUPHGLFDODQGGLVDELOLW\EHQHÂżWV
Kane Â (Malta) Â has Â moved Â its Â operations Â to Â new Â passes Â a Â wealth Â of Â talent Â and Â experience, Â and Â Kane Â is Â keen Â to Â build Â upon Â the Â successes Â they Â premises Â in Â Zebbug. have Â achieved. Â By Â moving Â to Â these Â new Â prem-Â Joseph Â Bannister, Â the Â Chairman Â of Â the Â Malta Â ises, Â we Â aim Â to Â demonstrate Â our Â clear Â commit-Â )LQDQFLDO 6HUYLFHV $XWKRULW\ RIÂżFLDOO\ RSHQHG ment Â to Â expanding Â the Â range Â of Â services Â we Â of-Â WKHRIÂżFH fer Â from Â our Â Malta Â operation.â€?
NewsInBrief New Â Jerseyâ€™s Â Iron Â Horse Â is Â a+
ern Â A lliance Â Insurance Â Group Â (EAIG), Â histor-Â strength Â rating Â of Â A-Â Â (excellent) Â and Â issuer Â credit Â ically Â profitable Â operating Â results, Â and Â sound Â UDWLQJRIÂłDÂ´ZDVDIÂżUPHG $0 %HVW KDV DIÂżUPHG WKH ÂżQDQFLDO VWUHQJWK standalone Â capitalisation. Iowa-Âbased Â Toyota Â Motor Â Insurance Â Companyâ€™s Â rating Â of Â A Â (Excellent) Â and Â issuer Â credit Â rating Â (TMICâ€™s) Â revised Â outlook Â suggests Â solid Â capitali-Â of Â â€œa+â€? Â of Â Iron Â Horse Â Insurance Â Company. Â Iron Â These Â positive Â rating Â factors Â are Â partially Â offset Â sation Â and Â strong Â underwriting Â results. Horse Â is Â a Â direct Â captive Â subsidiary Â of Â Chev-Â by Â Eastern Â Reâ€™s Â exclusive Â reliance Â on Â EIHI Â and Â ron Â Corporation. EAIG Â for Â production Â of Â all Â of Â its Â business. However, Â TMICâ€™s Â outlook Â could Â be Â altered Â if Â its Â op-Â erating Â performance Â depreciates Â below Â expectation. These Â positive Â rating Â factors Â are Â partially Â offset Â by Â Iron Â Horseâ€™s Â high Â net Â loss Â exposures, Â as Â the Â cov-Â Eastern Â Re Â is Â a Â cell Â captive, Â whose Â general Â cell Â erages Â provided Â tend Â to Â result Â in Â claims Â that Â are Â is Â a Â wholly Â owned Â subsidiary Â of Â EIHI Â and Â utilises Â Looks Â can Â be Â deceiving, Â says Â FKDUDFWHULVHGDVORZIUHTXHQF\EXWKLJKVHYHULW\ the Â expertise Â of Â Employers Â Alliance, Â a Â Penn-Â sylvania-Âdomiciled Â insurance Â services Â provider Â Willis Â Re In Â its Â role Â as Â a Â captive Â insurer, Â Iron Â Horse, Â along Â and Â member Â of Â EAIG Â that Â acts Â as Â the Â third Â party Â with Â Heddington Â Insurance, Â currently Â provides Â administrator Â and Â provides Â services Â for Â all Â of Â the Â Rate Â increases Â in Â North Â American Â and Â interna-Â insurance Â products Â for Â Chevron Â and Â its Â subsid-Â cells Â of Â Eastern Â Re. tional Â reinsurance Â markets Â are Â due Â to Â modest Â iaries. Â The Â insurance Â needs Â of Â Chevron Â are Â sup-Â losses Â and Â poor Â resultsâ€”not Â a Â hardening Â mar-Â plied Â through Â these Â captive Â operations, Â where Â Eastern Â Re Â issues Â preferred Â shares Â to Â its Â cell Â ket, Â found Â a Â report Â by Â Willis Â Re. appropriate, Â and Â the Â commercial Â market. owners, Â which Â are Â agent Â or Â group Â captives Â that Â 7KHUHSRUWHQWLWOHG/RRNVFDQEH'HFHLYLQJÂżQGV purchase Â workersâ€™ Â compensation Â coverage Â Iron Â Horse Â and Â the Â other Â Chevron Â captives Â pro-Â from Â EIHI. Â These Â agent Â and Â group Â captives Â par-Â WKDWLQVSLWHRIKHDGOLQHÂżJXUHVSUHGLFWLQJUDWHLQ-Â vide Â comprehensive Â coverage Â above Â Chevronâ€™s Â WLFLSDWH LQ WKH SURÂżWV DQG ORVVHV RI WKH FHOO IRU creases, Â there Â is Â enough Â volume Â in Â the Â market. Â The Â targeted Â underwriting Â approach Â taken Â by Â internal Â retentions. which Â they Â are Â the Â owners. most Â reinsurers Â to Â manage, Â analyse Â and, Â in Â some Â cases, Â de-Ârisk Â their Â portfolios, Â has Â been Â rewarded Â Eastern Â Re Â is Â â€œexcellentâ€? This Â dynamic Â provides Â added Â incentive Â to Â the Â agent Â with Â differential Â pricing, Â the Â report Â found. Â This Â ap-Â or Â group Â captive Â to Â prevent Â adverse Â selection Â for Â proach Â has Â been Â welcomed Â by Â cedents, Â but Â does Â $0 %HVW KDV DIÂżUPHG WKH ÂżQDQFLDO VWUHQJWK the Â business Â being Â assumed Â by Â Eastern Â Re. not Â support Â a Â generalised Â market Â hardening. rating Â of Â A Â (Excellent) Â and Â issuer Â credit Â rating Â of Â â€œaâ€? Â of Â Eastern Â Re, Â SPC. Â The Â outlook Â for Â both Â â€œThe Â reinsurance Â market Â is Â stable Â and Â orderly, Â but Â ratings Â is Â stable. Toyotaâ€™s Â captive Â rating Â goes Â the Â reality Â is Â that Â it Â is Â not Â hardening,â€? Â said Â Peter Â Hearn, Â chairman Â of Â Willis Â Re. Â â€œIn Â fact, Â some Â buyers Â The Â ratings Â recognise Â Eastern Â Reâ€™s Â stra-Â from Â stable Â to Â positive with Â loss-Âfree Â programmes, Â even Â in Â areas Â of Â peak Â tegic Â affiliation Â with Â its Â holding Â company, Â Eastern Â Insurance Â Holdings Â (EIHI) Â and Â the Â Toyotaâ€™s Â captive Â rating Â was Â revised Â from Â a Â exposure, Â have Â managed Â to Â obtain Â risk-Âadjusted Â member Â companies Â that Â make Â up Â the Â East-Â VWDEOH WR D SRVLWLYH RXWORRN DQG WKH ÂżQDQFLDO rate Â reductions Â at Â the Â 1 Â June Â and Â 1 Â July Â renewals.â€?
Standing out in a crowd CIT talks to Jason Flaxbeard and Matthew Takamine of insurance brokerage HUKJVUZ\S[PUNĂ„YT)LLJOLY*HYSZVUHIV\[ILPUNKPÉˆLYLU[PUJHW[P]LPUZ\YHUJL MARK Â DUGDALE Â REPORTS
Flaxbeard %HHFKHU &DUOVRQ LV XQLTXH LQ WKDW ZHRIIHUDVLQJOHSURÂżWFHQWUHPRGHOVRWKDWRXU clients Â have Â access Â to Â all Â of Â our Â national, Â top-Âtier Â resources Â without Â complicated Â political Â or Â local Â SURÂżW FHQWHU PHQWDOLWLHV :H XQGHUVWDQG WKDW your Â exposures Â are Â different Â and Â work Â diligently Â to Â provide Â appropriate Â alternatives, Â across Â our Â service Â spectrum, Â to Â match Â your Â needs.
Jason Â Flaxbeard
Senior Â managing Â director Beecher Â Carlson
From Â a Â philosophical Â perspective, Â we Â try Â to Â of-Â fer Â the Â best Â services Â that Â we Â possibly Â can. Â Any Â Another Â differentiator Â is Â that Â we Â are Â able Â to Â meet Â skills Â that Â we Â have Â or Â products Â that Â we Â offer Â give Â the Â SSAE Â 16 Â reporting Â standard Â for Â reporting Â us Â that Â extra Â ability Â to Â consult. Â CIT on Â the Â internal Â controls Â in Â our Â organisation. Â It Â is Â very Â useful Â for Â public Â companies Â because Â it Â allows Â them Â to Â know Â that Â they Â can Â rely Â on Â the Â ÂżQDQFLDOVWKDWZHJLYHWKHPDVRXUFRQWUROVDUH being Â audited Â by Â an Â external Â party Â and Â they Â can Â FRQVROLGDWH WKRVH ÂżQDQFLDOV LQWR WKHLU FRQVROL-Â dated Â numbers Â without Â additional Â control Â work. Â Indeed, Â the Â SSAE Â 16 Â Type Â II Â report Â may Â even Â reduce Â external Â audit Â fees Â for Â our Â clients.
However, Â offshore Â domiciles Â are Â beginning Â to Â UHDOO\ Ă€RXULVK DQG WKHLU JURZWK LV FRQWLQXLQJ They Â tend Â to Â be Â the Â largest Â domiciles Â and Â they Â have Â become Â very Â good Â at Â regulating Â and Â look-Â ing Â after Â captives. Â Generally, Â as Â long Â as Â cap-Â WLYH GRPLFLOHV DUH ZHOO UXQ WKH\ WHQG WR HTXDO out. Â What Â you Â have Â to Â look Â for Â when Â selecting Â a Â domicile Â are Â the Â nuances. Â For Â example, Â the Â NRRA, Â which Â is Â a Â part Â of Â the Â US Â Dodd-ÂFrank Â Act, Â may Â levy Â a Â tax Â on Â companies Â providing Â LQVXUDQFH FRYHUDJH RXWVLGH RI WKHLU KHDGTXDU-Â WHUHG VWDWH ,I \RX DUH KHDGTXDUWHUHG LQ 1HZ <RUN\RXPD\ORRNDW1HZ<RUNRYHU9HUPRQW Takamine: Â There Â are Â some Â excellent Â manag-Â as Â a Â domicile Â for Â your Â captive Â so Â that Â you Â can Â ers Â out Â there, Â so Â we Â try Â to Â hire Â the Â best Â possible Â manage Â that Â tax Â liability. Â people Â as Â a Â means Â of Â differentiating Â the Â services Â that Â we Â provide. Â We Â are Â willing Â to Â spend Â more Â on Â How Â do Â you Â work Â with Â your Â clients Â KLULQJSHRSOHZKRDUHTXDOLÂżHG&3$VDQGDUHH[-Â perienced Â professionals Â in Â the Â captive Â insurance Â to Â evaluate Â these Â nuances? industry. Â Some Â of Â our Â competitors Â outsource Â their Â Matthew Â Takamine: Â We Â do Â it Â on Â a Â client-Âby-Â DFFRXQWLQJDQGEDFNRIÂżFHRSHUDWLRQVWRUHGXFH FOLHQW EDVLV :H ORRN DW HDFK FOLHQWÂśV VSHFLÂżF their Â costs Â of Â labour, Â but Â to Â us, Â such Â practices Â re-Â circumstances, Â which Â are Â key Â to Â them, Â and Â sult Â in Â a Â product Â that Â is Â more Â transactional Â rather Â we Â carry Â out Â a Â domicile Â analysis Â comparing Â than Â consultative, Â and Â that Â is Â where Â we Â can Â truly Â what Â we Â think Â would Â be Â the Â top Â domiciles Â for Â provide Â value-Âadded Â services Â to Â our Â clients Â and Â that Â company. Â We Â weigh Â a Â variety Â of Â factors, Â reduce Â their Â overall Â cost Â of Â risk. Â including Â geographical Â proximity Â to Â the Â par-Â ent Â company, Â the Â working Â relationship Â with Â the Â regulator, Â the Â cost Â of Â doing Â business, Â taxes Â and Â other Â relevant Â factors. Â We Â assess Â all Â issues Â and Â make Â a Â recommendation Â to Â the Â company Â on Â where Â they Â should Â be Â domiciled. Â For Â our Â existing Â clients, Â we Â have Â a Â duty Â to Â periodically Â review Â their Â current Â domiciles Â to Â see Â if Â they Â are Â client Â appropriate.
that Â we Â provide. Â This Â is Â all Â of Â the Â time, Â whether Â ZH DUH EXLOGLQJ WKHLU FDSWLYH UXQQLQJ LW ÂżWWLQJ it Â in Â with Â their Â overall Â brokerage Â operations, Â or Â anything Â else. Â When Â these Â services Â are Â provid-Â ed Â in Â an Â integrated, Â seamless Â manner, Â we Â can Â provide Â a Â better Â product.
Senior Â vice Â president Beecher Â Carlson
Jason Â Flaxbeard: Â Bermuda Â and Â the Â Cayman Â ,VODQGVZHUHWKHTXLFNHVWWRPDUNHWDQGFDPH into Â being Â before Â the Â US, Â so Â a Â lot Â of Â the Â legacy Â accounts Â are Â still Â in Â those Â jurisdictions. Â The Â de-Â ciding Â difference Â between Â domiciles Â offshore Â and Â onshore Â is Â often Â that Â offshore Â domiciles Â have Â a Â much Â better Â capitalisation Â structure. Â It Â is Â possible Â to Â write Â more Â premiums Â with Â less Â capi-Â tal Â offshore Â than Â it Â is Â onshore. Â Having Â said Â that, Â there Â are Â taxation Â issues Â in Â offshore Â domiciles. Â Unfortunately, Â there Â is Â also Â a Â perception Â issue Â offshore Â too. Â Companies Â have Â been Â known Â to Â ask Â whether Â keeping Â money Â offshore Â is Â an Â ap-Â propriate Â use Â of Â American Â dollars.
many Â alternatives Â to Â traditional Â insurance, Â hav-Â ing Â pioneered Â many Â of Â the Â most Â innovative Â cap-Â tive Â design Â concepts Â that Â exist Â in Â the Â industry. Â I Â would Â say Â that Â our Â key Â differentiator Â is Â that Â we Â are Â a Â captive Â manager Â and Â a Â consultant. Â We Â try Â to Â look Â at Â a Â captive Â and Â consult Â on Â new Â uses Â of Â a Â captive, Â better Â uses Â of Â assets Â that Â are Â in Â a Â cap-Â tive Â and Â better Â ways Â of Â viewing Â a Â captive. Â Our Â competitors Â can Â be Â transactional Â in Â the Â sense Â that Â their Â consulting Â services Â do Â not Â join Â up Â with Â their Â other Â services, Â such Â as Â accounting. Â Each Â one Â of Â them Â has Â a Â consulting Â practice, Â but Â what Â we Â do Â differently Â is Â present Â all Â of Â our Â services Â together. Â Matt Â Takamine Â is Â capable Â of Â doing Â all Â of Â the Â consulting Â and Â all Â of Â the Â accounting Â for Â a Â particular Â client, Â as Â can Â most Â of Â the Â people Â on Â my Â captive Â team.
Matthew Â Takamine
How Â do Â you Â view Â the Â onshore Â versus Â offshore Â debate?
How Â does Â Beecher Â Carlson Â integrate Â its Â insurance Â brokerage Â and Â cap-Â tive Â management Â services?
Takamine: Â Of Â the Â 30 Â or Â so Â captive Â accounts Â that Â we Â take Â care Â of Â in Â Hawaii, Â I Â would Â say Â that Â 40 Â percent Â are Â brokerage Â clients Â as Â well. Â We Â spend Â a Â considerable Â amount Â of Â time Â working Â with Â our Â brokerage Â team Â to Â properly Â service Â those Â ac-Â How Â does Â Beecher Â Carlson Â differentiate Â counts. Â The Â remaining Â accounts Â are Â clients Â who Â we Â only Â provide Â with Â captive Â management Â ser-Â itself Â from Â its Â competitors? vices, Â although Â we Â will Â often Â provide Â actuarial Â Flaxbeard: Â Beecher Â Carlsonâ€™s Â history Â lies Â in Â and Â other Â consulting Â services Â to Â them Â too. DOWHUQDWLYHÂżQDQFLQJVROXWLRQVDQGFDSWLYHPDQ-Â agement. Â For Â more Â than Â 30 Â years, Â we Â have Â There Â is Â a Â high Â degree Â of Â coordination Â between Â helped Â clients Â to Â explore Â and Â understand Â the Â captive Â management Â and Â the Â other Â services Â
Competitiveness is the mother of invention Since Maltaâ€™s accession to the EU, the captive insurance domicile has turned [VPUUV]H[PVUHZHTLHUZVMKPÉˆLYLU[PH[PUNP[ZVÉˆLYPUNHZ*0;Ă„UKZV\[ MARK Â DUGDALE Â REPORTS The Â captive Â insurance Â industry Â is Â getting Â mightily Â competitive. Â There Â are Â more Â than Â 60 Â active Â domiciles, Â according Â to Â CICAâ€™s Â domicile Â listings. Â Domiciles Â from Â the Â US, Â Europe Â and Â the Â Caribbean Â contribute Â the Â greatest Â share Â WR WKLV ÂżJXUH ZKLOH GRPLFLOHV IURP &DQDGD South Â America Â and Â Asia Â also Â feature. Â New Â domiciles Â are Â also Â entering Â the Â captive Â busi-Â nessâ€”the Â US Â State Â of Â Floridaâ€™s Â captive Â leg-Â islation Â became Â effective Â on Â 1 Â July. Â With Â so Â much Â choice, Â captive Â insurance Â companies Â will Â look Â to Â match Â a Â domicile Â to Â its Â individual Â QHHGV PHDQLQJ WKDW RQHVL]HÂżWVDOO GRPL-Â ciles Â could Â be Â overlooked. This Â underlines Â the Â importance Â of Â domiciles Â dif-Â ferentiating Â themselves. Â Each Â jurisdiction Â needs Â DXQLTXHVHOOLQJSRLQWDQGZKLOHLWPD\QRWEH the Â only Â reason Â why Â a Â captive Â insurance Â com-Â pany Â chooses Â a Â particular Â domicile, Â it Â acts Â as Â
DQ DGGLWLRQDO EHQHÂżW WKDW D FDSWLYH LQVXUDQFH structures. Â Malta Â recognised Â that Â if Â it Â wanted Â to Â company Â will Â not Â be Â able Â to Â get Â anywhere Â else. differentiate Â itself Â from Â its Â competitors Â in Â the Â EU, Â the Â PCC Â legislation Â could Â help Â achieve Â this.â€? Malta Â is Â a Â domicile Â that Â understands Â the Â im-Â portance Â of Â differentiating Â factors. Â When Â it Â be-Â Dr Â Matthew Â Bianchi, Â a Â partner Â in Â the Â insur-Â came Â a Â member Â of Â the Â EU Â in Â 2004, Â it Â moved Â ance Â and Â pensions Â practice Â at Â Malta-Âbased Â TXLFNO\WRLPSOHPHQW3URWHFWHG&HOO&RPSDQ\ ODZÂżUP*DQDGR $VVRFLDWHV$GYRFDWHVH[-Â (PCC) Â legislation. plains Â that Â a Â PPC Â is Â a Â normal Â trading Â company Â with Â the Â ability Â to Â establish Â â€˜cellsâ€™ Â within Â itself, Â Clive Â James, Â the Â COO Â of Â Kane, Â which Â recently Â so Â that Â assets Â that Â are Â attributable Â to Â the Â cell Â PRYHG LWV 0DOWD RIÂżFH WR QHZ SUHPLVHV DV LW (cellular Â assets) Â can Â be Â segregated Â from Â as-Â looks Â to Â expand Â its Â captive Â and Â life Â and Â pension Â sets Â that Â are Â not Â attributable Â to Â the Â cell Â (non-Â administration Â businesses Â on Â the Â island, Â says: Â cellular Â assets). Âł3&&V ZHUH ÂżUVW HVWDEOLVKHG LQ *XHUQVH\ LQ $QXPEHURIGRPLFLOHVTXLFNO\UHFRJQLVHG He Â adds: Â â€œThe Â liabilities Â of Â the Â coreâ€”as Â the Â non-Â that Â they Â provided Â an Â alternative Â market Â po-Â FHOOXODUDVVHWVDUHNQRZQÂ˛PD\QRWEHVDWLVÂżHG tentially Â for Â smaller Â captives, Â but Â also Â that Â they Â out Â of Â the Â assets Â of Â the Â cell. Â Seen Â the Â other Â way, Â ZHUHDPXFKPRUHHIÂżFLHQWZD\RIXVLQJFDSLWDO creditors Â of Â a Â cell Â have Â their Â claims Â insulated Â The Â upfront Â costs Â and Â running Â costs Â are Â less Â in Â from Â claims Â of Â creditors Â of Â the Â core Â and Â of Â credi-Â a Â PCC, Â and Â also Â theyâ€™ve Â proven Â to Â be Â robust Â tors Â of Â other Â cells. Â Our Â law Â provides Â for Â mecha-Â
Domicile0ROlLE nisms Â which Â ensures Â this Â principle Â remains Â sat-Â To Â stay Â competitive, Â Malta Â has Â to Â get Â innovative, Â James Â says: Â â€œI Â would Â add Â that Â while Â [Maltaâ€™s] Â LVÂżHGDWDOOWLPHVÂ´ according Â to Â Bianchi. Â He Â says Â that Â innovation Â legislation Â is Â capable Â of Â dealing Â with Â such Â struc-Â is Â a Â key Â component Â to Â the Â success Â of Â captive Â ture, Â itâ€™s Â also Â important Â to Â make Â sure Â the Â infra-Â Captive Â owners Â subscribe Â to Â cell Â shares Â that Â are Â insurance, Â especially Â in Â light Â of Â the Â current Â eco-Â structure Â is Â there Â as Â well. Â The Â ILS Â is Â an Â area Â that Â we Â at Â Kane Â are Â closely Â involved Â in, Â but Â at Â issued Â by Â a Â PCC Â in Â order Â to Â establish Â cells Â in Â nomic Â and Â regulatory Â scenario. present Â much Â of Â this Â business Â is Â conducted Â by Â that Â PCC. Â Bianchi Â says: Â â€œThe Â proceeds Â of Â the Â FHOO VKDUH LVVXH FRQVWLWXWH WKH ÂżUVW FHOOXODU DV-Â â€œThough Â innovation Â may Â consist Â of Â incremental Â our Â operations Â in Â Cayman Â and Â Bermuda. Â At Â the Â sets Â attributable Â to Â the Â cell. Â While Â the Â core Â of Â improvements Â as Â for Â instance Â improvements Â to Â HQGRIWKHGD\KRZHYHULWÂśVDÂżQLWHPDUNHWRXW the Â PCC Â is Â capitalised Â to Â meet Â minimum Â capital Â pricing Â and Â the Â understanding Â of Â risks, Â innova-Â there Â and Â Malta Â has Â to Â recognise Â that Â it Â needs Â UHTXLUHPHQWVLQWHUPVRIFXUUHQWVROYHQF\OHJLV-Â tion Â of Â the Â disruptive Â type Â is Â also Â key. Â We Â un-Â a Â wide Â skill Â set Â to Â expand Â on Â their Â current Â busi-Â lation, Â the Â cell Â is Â capitalised Â with Â any Â additional Â derstand Â that Â the Â application Â of Â Solvency Â II Â will Â ness Â model.â€? FDSLWDOWKDWZLOOEHUHTXLUHGLQRUGHUWRFDUU\RQ likely Â herald Â a Â period Â of Â innovation Â in Â the Â insur-Â the Â proposed Â operation Â through Â the Â cell. Â Com-Â ance Â market Â at Â large Â including Â in Â the Â captive Â As Â a Â captive Â insurance Â domicile, Â Malta Â is Â do-Â pared Â to Â standalones, Â cells Â may Â present Â a Â less Â insurance Â and Â alternative Â risk Â transfer Â sphere. Â ing Â the Â business. Â There Â are Â 13-Âaffiliated Â in-Â 0DOWD KDV DOUHDG\ FRQÂżUPHG LWV DSWLWXGH WR LQ-Â capital-Âintensive Â alternative. Â This Â prospect Â may Â surance Â and Â reinsurance Â companies Â (as Â pure Â be Â particularly Â attractive Â to Â small Â and Â medium-Â novation: Â It Â is Â the Â only Â EU Â member Â state Â with Â captives Â are Â known Â in Â terms Â of Â Maltaâ€™s Â insur-Â protected Â cell Â and Â incorporated Â cell Â legislation Â sized Â captive Â owners.â€? ance Â legislation), Â eight Â PCCs, Â 17 Â protected Â on Â its Â statute Â books.â€? cells Â and Â 25 Â insurance Â principals Â operating Â Although Â Malta Â has Â differentiated Â itself Â from Â its Â from Â Malta, Â says Â Bianchi. Â During Â 2011, Â the Â European Â competitors Â and Â focused Â on Â its Â cap-Â annual Â gross Â premium Â written Â for Â entities Â tive Â insurance Â offering, Â this Â does Â not Â mean Â that Â under Â management Â was Â nearly Â â‚Ź1.8 Â billion, Â the Â island Â will Â rest Â on Â its Â laurels. Â James Â points Â to Â according Â to Â Malta Â Insurance Â Managers Â As-Â Munich Â Reâ€™s Â decision Â to Â set Â up Â in Â Maltaâ€”â€œfrom Â sociation Â figures. Â Innovating Â to Â stay Â ahead Â a Â reinsurance Â perspective, Â [that] Â is Â a Â fairly Â big Â of Â competitors Â will Â help Â Malta Â to Â continue Â moveâ€?â€”and Â the Â fact Â that Â the Â island Â is Â looking Â at Â to Â attract Â captive Â insurance Â business Â to Â its Â insurance-Âlinked Â securities Â (ILS), Â as Â indications Â shores, Â and Â as Â time Â goes Â on, Â it Â can Â decide Â that Â Malta Â does Â not Â consider Â itself Â to Â be Â a Â niche Â whether Â it Â needs Â to Â diversify Â so Â that Â it Â can Â attract Â other Â types Â of Â business. Â CIT captive Â insurance Â domicile.
Although Â Malta Â has Â differentiated Â itself Â from Â its Â European Â competitors Â and Â focused Â on Â its Â captive Â insurance Â offering, Â this Â does Â not Â mean Â that Â the Â island Â will Â rest Â on Â its Â laurels
Âł3&&V DUH XVHG IRU ÂżQDQFLDO SURGXFWV DQG LQ-Â VXUDQFHV UDQJLQJ IURP ÂżQDQFLDO ZDUUDQWLHV right Â through Â to Â smaller Â captives,â€? Â adds Â James. Â â€œWeâ€™ve Â also Â seen Â some Â transformer Â business Â and Â life Â business Â go Â through Â PCC Â structures Â DVZHOO7KHUHDVRQWKH\DUHVRFDSLWDOHIÂżFLHQW LVEHFDXVHWKHFDSLWDOLVLQWKHFRUH<RXGRQÂśW need Â to Â put Â two Â or Â three Â million Â euros Â in Â to Â ac-Â tually Â set Â up Â the Â business. Â This Â is Â one Â of Â the Â reasons Â why Â they Â are Â becoming Â increasingly Â popular Â in Â Malta.â€? Maltaâ€™s Â PCC Â ability Â is Â the Â tip Â of Â the Â iceberg. Â As Â a Â part Â of Â the Â EU, Â it Â also Â offers Â captive Â owners Â easy Â access Â to Â the Â EU Â through Â the Â passporting Â regime, Â an Â available Â regulator Â and Â lower Â costs Â when Â compared Â to Â other Â EU Â domiciles. Â It Â also Â enables Â captive Â own-Â ers Â to Â establish Â Incorporated Â Cell Â Companies Â (ICCs) Â through Â regulations Â that Â were Â enacted Â in Â 2011, Â says Â Bianchi. James Â adds: Â â€œWhat Â Malta Â has Â sought Â to Â do Â is Â FDSLWDOLVHRQWKHPDQ\EHQHÂżWVLWFDQRIIHUIURP a Â captive Â perspective Â in Â what Â is Â a Â relatively Â competitive Â market Â place, Â and Â has Â put Â in Â place Â a Â regulatory Â structure Â which Â is Â focused Â on Â cap-Â tive Â insurance Â rather Â than Â the Â broader Â general Â insurance Â market.â€?
Domiciles that make sense Stewart Â Feldman, Â the Â CEO Â and Â general Â counsel Â of Â Capstone Â Associated Â 6HUYLFHVGLVFXVVHVWKHEHQHÂżWVRIVHOHFWLQJD&DULEEHDQGRPLFLOH MID-ÂMARKET Â COMPANIES There Â has Â been Â a Â proliferation Â of Â US Â domiciles Â adopting Â captive Â legislation Â over Â the Â past Â sev-Â eral Â years. Â The Â push Â began Â with Â Vermont Â in Â the Â early Â 1980s Â with Â a Â view Â to Â creating Â jobs Â in Â an Â otherwise Â remote Â part Â of Â the Â country, Â with Â many Â states Â joining Â the Â bandwagon, Â especially Â in Â recent Â years. Â States Â hungry Â for Â revenue Â have Â jumped Â at Â what Â they Â perceive Â to Â be Â an Â oppor-Â tunity Â for Â a Â new Â source Â of Â both Â revenue Â and Â lo-Â cal Â jobs, Â given Â the Â fact Â that Â 50 Â percent Â of Â the Â US Â property Â and Â casualty Â insurance Â market Â is Â written Â through Â captives. Â We Â believe Â that Â these Â states Â will Â soon Â realise Â the Â error Â of Â this, Â as Â oth-Â ers Â have Â already Â discovered, Â and Â they Â will Â re-Â DOLVHWKDWFDSWLYHUHJXODWLRQUHTXLUHVVLJQLÂżFDQW investment Â in Â infrastructure. Â Legal Â advisors Â have Â already Â recognised Â the Â problems Â facing Â many Â US Â domiciles Â looking Â to Â collect Â taxes Â and Â fees, Â but Â are Â neither Â staffed Â nor Â experienced Â in Â captive Â insurance Â regulation.
Kentucky, Â Maine, Â Montana, Â Missouri, Â Nevada, Â 1HZ -HUVH\ 1HZ <RUN 5KRGH ,VODQG 6RXWK Carolina, Â South Â Dakota, Â Tennessee, Â Utah, Â Ver-Â mont, Â Virginia Â and Â West Â Virginia. Â Most Â of Â these Â states Â have Â come Â online Â in Â the Â last Â few Â years. Â With Â the Â adoption Â of Â the Â US Â Dodd-ÂFrank Â Actâ€™s Â NRRA Â (the Â Non-Âadmitted Â and Â Reinsurance Â Reform Â Actâ€”see Â below), Â the Â number Â of Â states Â with Â enabling Â legislation Â will Â increase.
commercial Â losses.
Domicile Â choice
Capstone Â is Â one Â of Â the Â countryâ€™s Â oldest Â and Â larg-Â est Â sponsors Â of Â â€˜intermediate Â sizeâ€™ Â captive Â insur-Â ance Â companies Â (property Â and Â casualty Â premi-Â ums Â of Â less Â than Â $1.2 Â million Â per Â year) Â that Â insure Â middle Â market Â businesses. Â These Â insurers Â oper-Â ate Â under Â Section Â 831(b) Â of Â the Â US Â Internal Â Rev-Â enue Â Code. Â Having Â formed Â more Â than Â 120 Â cap-Â At Â the Â same Â time, Â more Â middle Â market Â com-Â tive Â insurance Â companies Â in Â multiple Â domiciles Â panies Â are Â looking Â to Â captives Â as Â a Â risk-Â over Â the Â past Â 14 Â years, Â Capstone Â understands Â planning Â alternative. Â Long Â the Â bastion Â of Â the Â the Â importance Â of Â choosing Â the Â right Â domicile. largest Â publicly-Âheld Â companies, Â captives Â are Â now Â recognised Â as Â viable Â for Â the Â sub-Â 1RWDOOGRPLFLOHVDUHFUHDWHGHTXDOO\%HFDXVH stantial, Â closely Â held Â business Â that Â seeks Â to Â a Â captive Â as Â an Â insurer Â has Â ongoing Â exchanges Â supplement Â current Â property Â and Â casualty Â with Â its Â regulators, Â the Â chosen Â domicile Â must Â coverages. Â For Â the Â business Â owner, Â a Â cap-Â have Â a Â staff Â able Â to Â timely Â and Â competently Â tive Â provides Â the Â insureds Â with Â greater Â influ-Â address Â ongoing Â regulatory Â issues. Â High Â on Â ence Â over Â the Â financial Â health Â of Â the Â insurer, Â Capstoneâ€™s Â criteria Â in Â evaluating Â a Â domicile Â for Â rather Â than Â being Â at Â risk Â of Â having Â coverages Â a Â particular Â captive Â is Â that Â domicileâ€™s Â expertise, Â US Â states Â with Â captive Â legislation Â now Â include Â negated Â due Â to Â poor Â investment Â decisions Â by Â VWDIÂżQJOHYHOVDQGFRPPLWPHQWWRUHJXODWLQJÂľLQ-Â Alabama, Â Arizona, Â Arkansas, Â Colorado, Â Dela-Â conventional Â insurers Â or Â their Â traditional Â pro-Â termediate Â sizeâ€™ Â captives, Â as Â opposed Â to Â major Â ware, Â Florida, Â Georgia, Â Hawaii, Â Illinois, Â Kansas, Â pensity Â to Â deny Â claims, Â especially Â significant Â conventional Â insurers. Â Industry Â expertise Â with Â
CaribbeanJurisdictions Non-ÂUS Â domiciles Since Â the Â founding Â of Â the Â Lloydâ€™s Â of Â London Â in-Â surance Â marketplace Â in Â 1688, Â England Â has Â been Â DPRQJWKHPRVWLQĂ€XHQWLDODPRQJWKHZRUOGZLGH reinsurance Â markets, Â which Â it Â shares Â with Â its Â overseas Â territory, Â Bermuda. Â Unsurprisingly, Â the Â principal Â â€˜offshoreâ€™ Â insurance Â domiciles Â are Â UK Â overseas Â territories, Â with Â their Â shared Â history Â of Â insurance Â expertise. Â The Â UKâ€™s Â expertise Â in Â insur-Â ance Â regulation, Â including Â infrastructure Â generally Â and Â captive Â regulation Â in Â particular, Â dwarfs Â that Â of Â 86GRPLFLOHVVXFKDV9HUPRQW7KHTXDOLW\DQG expertise Â of Â offshore Â domiciles Â is Â unmatched Â by Â their Â domestic Â brethren. Â These Â offshore Â jurisdic-Â tions Â have Â thrived Â in Â providing Â their Â services Â in Â an Â internationally Â competitive Â marketplace Â and Â have Â a Â much Â longer Â track Â record Â in Â insurance Â regula-Â tion Â and Â services, Â building Â on Â the Â UKâ€™s Â traditional Â expertise Â in Â the Â area. Â The Â British Â overseas Â terri-Â tories Â continue Â to Â dominate Â the Â captive Â insurance Â markets, Â with Â Anguilla Â specialising Â in Â captives Â for Â middle Â market Â companies. In Â contrast, Â most Â of Â the Â US Â statesâ€™ Â recent Â cap-Â WLYHSXVKLVEDVHGRQDÂľIRUSURÂżWÂśPRWLYH)RU example, Â Vermont Â has Â a Â gross Â receipts Â tax Â on Â premiums. Â It Â also Â extracts Â local Â jobs Â from Â its Â regulated Â captives. Â In Â what Â is Â largely Â a Â ru-Â ral Â state, Â it Â has Â created Â more Â than Â 1400 Â jobs Â and Â millions Â of Â dollars Â of Â tax Â revenue, Â accord-Â ing Â to Â estimates. Â The Â professionals Â who Â hold Â these Â jobs Â typically Â have Â an Â average Â pay Â that Â is Â considerably Â greater Â than Â the Â average Â sal-Â ary Â that Â is Â earned Â by Â Vermonters. Â To Â ensure Â ORFDO FDSWLYH MRE IRUPDWLRQ WKH VWDWH UHTXLUHV a Â Vermont-Âbased Â captive Â manager. Â It Â also Â re-Â TXLUHVDWOHDVWRQHERDUGPHPEHUWRSK\VLFDOO\ be Â in Â Vermont Â for Â the Â annual Â board Â of Â direc-Â tors Â meeting, Â resulting Â in Â increased Â hotel Â oc-Â cupancy Â and Â related Â tourism Â revenues Â for Â the Â VWDWH7KHVHUHTXLUHPHQWVDUHDWRGGVZLWKWKH alternative Â risk Â planning Â goals Â of Â the Â middle Â market Â captive. Other Â US Â states Â have Â similar Â â€˜job Â creatingâ€™ Â pro-Â visions Â in Â their Â regulatory Â structures. Â Montana Â DQG 6RXWK &DUROLQD UHTXLUH RQVLWH PHHWLQJV with Â the Â objective Â of Â promoting Â tourism, Â which Â has Â nothing Â to Â do Â with Â the Â business Â purpose Â of Â the Â captive Â and, Â in Â fact, Â drains Â its Â resources. Â To Â be Â clear, Â the Â added Â burdens Â of Â domestic Â domi-Â FLOHVDUHDWRGGVZLWKHIIHFWLYHDQGHIÂżFLHQWFDS-Â tive Â arrangements Â and Â are Â not Â usually Â seen Â in Â offshore Â jurisdictions. Similarly, Â states Â hungry Â for Â tax Â revenue Â have Â focused Â on Â innovations, Â such Â as Â segregat-Â ed Â cells Â or Â protected Â cells, Â without Â thinking Â through Â the Â regulatory Â and Â taxation Â impli-Â cations Â of Â them, Â leading Â to Â insureds Â being Â caught Â in Â potentially Â undesirable Â situations. Â The Â states Â have Â taken Â up Â these Â programmes Â as Â the Â idea Â du Â jour Â without Â thinking Â through Â the Â implications Â of Â having Â unsophisticated Â persons Â entering Â into Â â€˜babyâ€™ Â captive Â arrange-Â ments, Â seeing Â only Â the Â opportunities Â for Â in-Â
creased Â tax Â revenue Â and Â without Â considering Â reached Â a Â similar Â conclusion Â as Â evidenced Â by Â Anguillaâ€™s Â growth Â over Â the Â last Â few Â years Â as Â the Â the Â regulatory Â implications. domicile Â of Â choice Â for Â smaller Â captives. Â
When Â US Â domiciles Â are Â inexperienced Â and Â understaffed The Â economic Â crisis Â in Â the Â US Â continues Â to Â adversely Â affect Â onshore Â domiciles. Â Having Â concluded Â that Â their Â captive Â bureaus Â are Â not Â SURÂżWDEOH VRPH VWDWHV KDYH OHIW WKHLU FDSWLYH bureaus Â without Â leadership, Â resulting Â in Â the Â unannounced Â decision Â to Â exit Â the Â captive Â busi-Â ness. Â For Â those Â active Â in Â the Â captive Â arena, Â they Â understand Â that Â a Â captive Â is Â a Â living, Â breathing Â insurance Â company Â with Â ongoing Â issues. Â The Â captive Â needs Â to Â have Â responsive Â regulators Â in Â place Â that Â can Â make Â timely Â decisions Â about Â ongoing Â issues Â in Â captive Â management. Â States Â that Â are Â short Â on Â staff Â have Â made Â operating Â in Â WKHVHGRPLFLOHVYHU\GLIÂżFXOW
,QFDVHVZKHUHWKHUHDUHWLPHVHQVLWLYHÂżOLQJV there Â is Â willingness Â on Â the Â part Â of Â the Â Anguillan Â Registrar Â and Â Financial Â Services Â Commission Â (ARFSC) Â to Â accommodate Â reasonable Â dead-Â lines Â and Â to Â put Â its Â onsite Â regulators Â on Â task Â to Â handle Â the Â extra Â work Â to Â meet Â these Â deadlines. Â Its Â department Â of Â insurance Â is Â both Â committed Â to Â and Â well Â versed Â in Â the Â regulation Â of Â captives. The Â Anguilla Â Insurance Â Act Â and Â the Â Insurance Â Regulations Â also Â provide Â a Â sound Â regulatory Â framework Â for Â the Â operation Â of Â captives. Â An-Â guilla Â excels Â in Â fairly Â and Â consistently Â enforcing Â its Â captive Â framework. Â The Â ARFSCâ€™s Â focus Â has Â been Â on Â providing Â a Â secure, Â practical Â regulatory Â framework Â for Â the Â safe Â and Â sound Â operation Â of Â captive Â insurance Â companies, Â and Â not Â on Â cre-Â DWLQJ DQG PDLQWDLQLQJ D UHJXODWRU\ PLQHÂżHOG strewn Â with Â bureaucracy. Â Its Â rules Â are Â a Â balance Â between Â good Â regulation Â and Â a Â recognition Â that Â FRYHUDJHV DUH EHLQJ ZULWWHQ WR DIÂżOLDWHV RI WKH captiveâ€™s Â owners. Â The Â ARFSC Â has Â responded Â in Â D WLPHO\ PDQQHU WR UHTXHVWV IRU LQWHUSUHWDWLRQV and Â rulings Â on Â technical Â insurance Â issues. Â
The Â newer Â US Â domiciles Â are Â to Â the Â captive Â business, Â the Â more Â likely Â it Â is Â that Â they Â will Â have Â poorly Â developed Â regulatory Â structures. Â There Â is Â much Â uncertainty Â as Â to Â how Â issues Â would Â be Â handled Â because Â there Â is Â no Â history. Â In Â contrast, Â when Â considering Â the Â appropri-Â ate Â domicile, Â Capstone Â evaluates Â the Â per-Â formance Â of Â its Â regulatory Â scheme Â operating Â %HIRUHIRUPLQJLWVÂżUVWFDSWLYHVLQ$QJXLOODDQG over Â past Â decades. before Â migrating Â dozens Â of Â captives Â there, Â Cap-Â stone Â did Â thorough Â due Â diligence. Â We Â have Â not Â been Â disappointed Â and Â today Â Capstone Â is Â a Â The Â Dodd-ÂFrank Â Act leading Â captive Â manager Â in Â Anguilla. Â CIT 7KH 'RGG)UDQN$FW KDV OHG WR D ORW RI TXHV-Â tions Â and Â new Â concerns Â among Â US-Âbased Â captives. Â Under Â the Â NRRA, Â having Â a Â captive Â in Â Vermont Â when Â the Â insureds Â are Â located Â in, Â for Â example, Â Pennsylvania, Â will Â open Â up Â the Â captive Â arrangement Â to Â double Â taxation. Â So, Â Vermont Â will Â tax Â the Â Vermont-Âdomiciled Â cap-Â tive, Â and Â Pennsylvania, Â the Â home Â state Â of Â the Â insureds, Â will Â tax Â the Â insureds Â on Â the Â same Â premiums. Â This Â is Â an Â untenable Â situation Â that Â the Â NRRA Â seems Â to Â have Â created Â with Â poor-Â ly Â chosen Â language Â while Â the Â US Â domiciles Â ZHUH DVOHHS DW WKH VZLWFK <HW FKRRVLQJ WKH insuredâ€™s Â home Â state Â creates Â another Â series Â of Â concerns. Â The Â NRRA Â has Â already Â led Â to Â a Â migration Â of Â captives Â out Â of Â the Â traditional Â US Â domiciles, Â such Â as Â Vermont. Â In Â contrast, Â this Â issue Â is Â a Â much Â smaller Â concern Â for Â Anguilla Â and Â other Â offshore Â domiciles.
Stewart Â A Â Feldman, Â Capstone Â Associated Â Services
the Â insuredsâ€™ Â business Â is Â also Â a Â consideration.
In Â summary, Â the Â choice Â of Â a Â captive Â domi-Â cile, Â like Â the Â design Â of Â a Â high-Ârise Â build-Â ingâ€™s Â foundation, Â is Â serious Â undertak-Â ing, Â calling Â for Â a Â disciplined, Â up-Âfront Â evaluation.
Choosing Â Anguilla From Â formation Â and Â licens-Â ing Â to Â responsive Â regula-Â tory Â oversight, Â Anguilla Â has Â met Â Capstoneâ€™s Â expectations. Â Oth-Â ers Â in Â the Â cap-Â tive Â marketplace Â seem Â to Â have Â
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Location: Vermont, Date: 7-9 August 2012 www.vcia.com/annualconference
Location: Indianapolis Date: 1-3 October 2012 www.siia.org
Location: Waikiki Date: 22-24 October 2012 www.hawaiicaptives.com
Location: Grand Cayman Date: 27-29 November 2012 www.caymancaptive.ky
The conference is a bustling hub of captive activity. VCIA welcomes participants from all over the world to network with key industry play- ers, enhance their captive educa- tion, and relax and renew in beau- tiful Vermont!
The SIIA National Conference & Expo is the world’s largest event fo- cused exclusively on the self-insur- ance/alternative risk transfer mar- ketplace and typically attracts more than 1,600 attendees from around the US and from a growing number of countries around the world.
The HCIC 2012 Forum will delve into opportunities to enhance your cap- tive and risk management strategies despite the stagnant economy. This conference will provide a wide range of educational seminars and speak- ers that will offer tremendous learn- ing and networking opportunities. Sponsorship forms and session sub- mission forms may be found at www. hawaiicaptives.com
Plans are underway to provide an informative series of panelists and VSHDNHUV DQG TXDOLW\ HGXFDWLRQDO content for the captive owner and those who are seeking information on captive formations in the Cayman Islands. There will be memorable so- cial events that will allow attendees to enjoy a taste of Grand Cayman.
Covering all areas of captive insurance
Don’t miss out, subscribe now
Industry Â appointments Montpelier Â Reinsurance, Â the Â Bermuda Â reinsur-Â After Â the Â exodus, Â analysts Â at Â Peel Â Hunt Â replaced Â ance Â subsidiary Â of Â Montpelier Â Re Â has Â named Â Dr Â the Â â€˜buyâ€™ Â rating Â with Â â€˜holdâ€™, Â raising Â its Â combined Â Gero Â Michel Â as Â head Â of Â risk Â analytics. operating Â ratio Â forecast Â by Â 1 Â percent Â for Â 2012 Â and Â 2 Â percent Â for Â the Â following Â year. Â Peel Â Hunt Â The Â new Â position Â at Â the Â company Â will Â involve Â also Â lowered Â gross Â written Â premium Â expecta-Â enhancing Â Montpelierâ€™s Â risk Â analysis Â efforts Â for Â tions Â for Â 2013 Â and Â 2014 Â by Â ÂŁ50 Â million, Â on Â the Â natural Â catastrophe Â exposed Â businesses Â includ-Â DVVXPSWLRQ WKDW LW ZLOO EH GLIÂżFXOW WR KROG RQ WR ing Â research, Â development, Â portfolio Â optimisa-Â all Â business Â written Â by Â those Â underwriters Â that Â tion Â and Â other Â underwriting Â initiatives. have Â left. Michel Â will Â report Â directly Â to Â Christopher Â Schaper, Â president Â of Â Montpelier Â Reinsurance Â in Â a Â position Â effective Â from Â 1 Â July. Â Schaper Â said: Â â€œHe Â brings Â a Â wealth Â of Â intellectual Â capabilities, Â business Â expe-Â ULHQFHDQGOHDGHUVKLSTXDOLWLHVWR0RQWSHOLHUDQG I Â look Â forward Â to Â working Â with Â him. â€œImproving Â the Â assessment Â of Â risks Â and Â translat-Â ing Â that Â knowledge Â into Â better Â underwriting Â deci-Â sions Â are Â key Â challenges Â in Â our Â industry, Â and Â the Â addition Â of Â Michel Â further Â strengthens Â our Â team Â in Â these Â areas.â€? Sidney Â Williams Â has Â joined Â captive Â manage-Â PHQWÂżUP6WUDWHJLF5LVN6ROXWLRQVDVYLFHFKDLU-Â man Â of Â its Â South Â Carolina Â operation. Williams Â was Â the Â CEO Â and Â president Â of Â BB&T Â Assurance Â for Â nine Â years Â until Â his Â retirement Â on Â At Â Strategic Â Risk Â Solutions, Â Williams Â will Â assist Â current Â and Â pro-Â spective Â captive Â owners Â in Â the Â Southeast Â and Â Mid-ÂAtlantic, Â and Â pro-Â vide Â regulatory Â support Â in Â those Â domiciles.
,QVXUDQFH PDQDJHPHQW ÂżUP .DQH KDV UHFUXLW-Â ed Â Damian Â McNamara Â and Â Gary Â Le Â Page Â to Â senior Â European Â roles, Â as Â well Â as Â opening Â two Â QHZRIÂżFHVLQ*XHUQVH\DQG0DOWD McNamara Â will Â be Â new Â head Â of Â business Â develop-Â ment Â in Â Europe, Â respon-Â sible Â for Â the Â development Â of Â innovative Â captive Â in-Â surance Â solutions Â for Â UK Â and Â European-Âbased Â cli-Â ents, Â both Â on Â a Â direct Â ba-Â sis Â and Â through Â partner-Â ships Â with Â independent Â insurance Â brokers. Â Most Â recently, Â he Â worked Â for Â KPMG Â and Â prior Â to Â this Â was Â at Â Investec. Le Â Page Â has Â also Â been Â named Â as Â se-Â nior Â account Â manager Â focusing Â primarily Â on Â the Â day-Âto-Âday Â man-Â agement Â of Â the Â Kane Â *XHUQVH\RIÂżFH Arizonaâ€™s Â director Â of Â in-Â surance Â Christina Â Urias Â retired Â on Â 1 Â July.
7KHÂżUPÂśV0LG6RXWKGLYLVLRQPDQDJHVFDSWLYHV Â in Â South Â Carolina, Â Washington, Â DC, Â and Â Dela-Â Former Â deputy Â director Â Gerrie Â Marks Â will Â be Â ware, Â and Â it Â is Â approved Â as Â a Â captive Â manager Â the Â new Â acting Â director Â of Â Arizonaâ€™s Â department Â in Â Tennessee. of Â insurance. Â
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â€œI Â am Â looking Â forward Â to Â continuing Â my Â work Â in Â WKH FDSWLYH LQGXVWU\ ZLWK >P\ QHZ ÂżUP@Â´ VDLG Williams. Â â€œWith Â the Â captive Â choices Â available, Â I Â see Â strong Â growth Â opportunities Â for Â the Â use Â of Â captives Â in Â the Â Mid-ÂAtlantic Â and Â Southeast.â€? Chief Â executive Â Gunter Â Saacke, Â chief Â un-Â derwriting Â officer Â Will Â Schuerch, Â and Â 10 Â fur-Â ther Â underwriters Â have Â left Â the Â Novae Â Reâ€™s Â Zurich Â operation.
Stephanie Â Lefkowski, Â chief Â analyst Â in Â Ari-Â zonaâ€™s Â captive Â division, Â said: Â â€œIt Â has Â been Â a Â pleasure Â working Â with Â Marks Â in Â her Â capacity Â Borch Â will Â serve Â east Â coast Â domiciles Â and Â focus Â as Â deputy Â director.â€? Â on Â providing Â clients Â with Â innovative Â solutions Â and Â driving Â returns Â on Â investment Â for Â their Â risk Â â€œI Â look Â forward Â to Â working Â with Â her Â in Â her Â new Â role Â management Â resources. and Â I Â am Â sure Â the Â transition Â will Â be Â seamless.â€? Â Before Â joining Â Beecher Â Carlson, Â Borch Â served Â Arizonaâ€™s Â captive Â insurance Â division Â has Â also Â as Â a Â controller Â at Â The Â Sporn Â Company, Â where Â UHFUXLWHGDQHZÂżQDQFLDODQDO\VW he Â was Â responsible Â for Â managing Â all Â accounts, Â Rae Â Ann Â Hughes Â is Â currently Â reviewing Â annual Â SUHSDULQJ PRQWKO\ ÂżQDQFLDO VWDWHPHQWV DQG DQGTXDUWHUO\ÂżQDQFLDOÂżOLQJVRI$UL]RQDGRPHV-Â managing Â the Â overall Â direction Â of Â the Â account-Â ing Â department. tic Â captive Â insurers. Â
It Â has Â been Â reported Â that Â Saake Â and Â Schuerch Â left Â the Â Lloydâ€™s Â reinsurer Â in Â May, Â due Â to Â re-Â straints Â on Â independence Â and Â a Â reinsurance Â book Â which Â has Â been Â lower Â than Â its Â insurance Â Specialised Â insurance Â brokerage Â and Â risk Â man-Â DJHPHQW ÂżUP %HHFKHU &DUOVRQ KDV DSSRLQWHG segment Â since Â 2010. John Â Borch Â as Â an Â accounting Â manager Â in Â its Â Their Â resignations, Â along Â with Â ten Â underwriters Â national Â captive Â practice. that Â included Â heads Â of Â agriculture, Â engineering Â and Â credit Â and Â surety, Â have Â raised Â concerns Â that Â %RUFKZLOOEHEDVHGLQWKHÂżUPÂśV9HUPRQWRIÂżFHLQ the Â insurer Â cannot Â retain Â business Â written Â by Â the Â US Â and Â will Â report Â to Â Peter Â Kranz, Â the Â senior Â these Â divisions. vice Â president Â of Â the Â national Â captive Â practice.
Borch Â has Â also Â worked Â as Â a Â senior Â accountant Â at Â AIG Â Insurance Â Management Â Services Â and Â as Â an Â account Â manager Â at Â Marsh Â Manage-Â ment Â Services. â€œWe Â are Â excited Â to Â have Â Borch Â join Â us,â€? Â said Â Kranz. Â â€œHe Â will Â bring Â great Â value Â to Â our Â team Â and Â clients.â€? Â CIT