Alternative Profit Programs

Alternative Risk Transfer
HOW DO YOU AND YOUR CLIENT BENEFIT?

By assuming a predetermined level of risk, you and/or your client retain the underwriting profits and investment income derived on your program. In addition, these programs can be structured in the most tax efficient manner through our Bermuda affiliated insurance carrier and one of our “A” rated domestic carriers.

Rent-A-Captive - Pure Fronting Funding Arrangements

Captive Formation & Management- Reinsurance Placements

Bermuda Broking -- Contained Self Insurance

Rent-A-Captive

Rent-A-Captive is an alternative plan structured to accomplish four (4) major objectives:

1. 
   To gain for the client the investment income, on premium cash flow and claims reserves, that traditionally is gained by the insurance company.
2. 
   To structure the plan so that the premiums and the Profit Return are structured in the most tax efficient manner.
3. 
   To give the client greater involvement in the claims management and adjustment in order to reduce the ultimate cost of risk.
4. 
   To give the client more direct control over the component parts of the plan resulting in greater flexibility in planning for the future.

How it works:

• The policy is issued to the insured from an insurance company.

• The insured pays the premium to a broker on a mutually agreeable basis.

• Operating expenses are deducted from the premium.

• The balance of the premium is ceded to the Rent-A-Captive for immediate investment.

• The client earns investment income on the ceded premium.