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Captive Management

Captive Management Services

Patriot Underwriters, Inc. has the following captive management companies: Patriot Captive Management (Cayman), Ltd., Patriot Captive Management (Bahamas), Ltd. and Patriot Captive Management, Inc. (domestic). These companies have fully licensed captive insurance managers regulated by the Cayman Islands Monetary Authority, the Insurance Commission of the Bahamas and the Delaware Department of Insurance.

Patriot Captive Management’s purpose is to provide comprehensive captive services that begin with the initial design through formation and ongoing management of all captive structures in multiple domiciles. We provide the following professional services for all licensed domiciles:

    • Captive Feasibility Studies and Company Formation
    • Preparation of Business Plans and Domiciliary License Applications
    • Domiciliary Regulatory Reporting and Local Compliance
    • Coordination of Annual External Financial Audit
    • Cash Management
    • Full Financial Reporting to Owners, Cedant Insurers and Regulatory Bodies
    • Investment Portfolio Coordination
    • Coordination of Corporate Meetings
    • Registered Office Services
    • Company Secretarial Services
    • Quarterly Operational Updates

Potential Captive Ownership Benefits

        • Underwriting Profit Retention
        • Investment Income Retention
        • Overall Reduction of Insurance Costs
        • Enhanced or Increased Access to Coverage
        • Coverage Stability in Volatile Insurance Environments
        • Cost Stability for Cash Flow and Budgetary Planning
        • Increased Control of Insurance Environment and Coverage

Types of Captives

Individual Account Captives

Individual Account Captives are designed for sophisticated accounts that desire to assume premium and losses on a quota share basis. These types of captives are called segregated portfolios or account companies. Segregated portfolio or account cells are established for individual accounts whose risk appetite tolerates their sharing in the ultimate underwriting results of the insurance program.

Typically, individual account captives are designed for accounts generating large annual premiums with an appetite to share in the overall cost of all the typical commercial insurance coverages. Retention of underwriting profits and investment income are achieved on a quota share basis in the premiums and losses for policies issued to the account.

Agency Captives

Patriot’s Preferred Agency Captive allows an agency to participate in the underwriting experience of its own book of business.

This program provides the key benefits of a wholly owned agency captive with very low capital requirements, but without incurring the costs of managing your own captive insurance company.

        • Select the amount of risk you want to assume
        • Defer commission as collateral
        • Earn market leading commission rates on business placed into the program
        • Participate in underwriting profits and investment income

Group Captive

A Group Captive insures the collective risks of an industry group, franchise, trade association or class of business. It can share the risk among several participants and spread the fixed cost of the captive among its various members. This allows insurance to be tailored precisely to the needs of the group and can provide substantial insurance savings.

Captive Ownership Benefits

Enhanced Risk Control

          • Insured can be more resilient and approve their agility in both near and long term planning

Reduced Insurance Costs

          • Retention of underwriting profits normally retained by the fronting carrier
          • Guaranteed cost vs. risk bearing (alternative market)

Smooth Underwriting Cycles

          • Minimize the pricing volatility of the commercial insurance market can be drastically reduced by having “Skin in the Game”

Improved Cash Flows

          • More flexibility in premium payment planning
          • Retention of underwriting profits
          • Utilization of reserving
          • Retention of investment income

Insure Difficult Risks

          • Provide coverage for those risks that are difficult or uneconomical to obtain in the commercial insurance market

Create a New Profit Center

          • Underwriting of risks of third parties, i.e. warranty programs, for customer retention and generating additional income

Improve Tax Strategy

          • Utilization of reserving to defer income and ultimate tax recognition

Access to Reinsurance Market

      • Purchase from reinsurance markets (domestic or international) which is normally denied to the direct insured

Patriot Underwriters Captive Solutions

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