Captives & Alternative Risks

The Ability to Turn Premium Payments into Profits

Alternative Risk Marketplace

Staying ahead of the program
The alternative risk marketplace is advancing more rapidly than its traditional counterpart. More than 50% of U.S. premiums are written in some form of an alternative risk program. The Capitol Group has remained on the cutting edge by introducing clients to a variety of alternative risk options.

Group Captives

A strong and growing concept
The Capitol Group has developed a core competency in the area of captives, with a particular focus on group captives. These groups have experienced excellent results since inception.

Group Captive Participation Benefits
In a captive, companies gain the ultimate level of ownership and control:
• Professional partners are hand-selected by captive owners 
• Captive members control how their specific claims are managed 
• Loss control services are customized to meet members’ needs and reduce risk 
• New members are identified and approved (or vetoed) by captive owners

Financial/Wealth Options and Flexibility
    • Insurance profits are tax-deferred to the shareholder

Reduced Overall Costs

    • Contributions are based on each company’s expected losses 
    • Premiums are likely to be more stable from year to year 
    • The ability to retain investment earnings and underwriting profit 
    • Fixed costs are controllable and can be reduced 

Improved Insurance Program
    • Enhanced coverage, marketability and cost control 
    • Forum for exchange of ideas; learn from members’ experiences 
    • No surprises in the renewal process; no bidding upheaval

Industries Represented:
• Food Manufacturers & Distributors 
• Metal Manufacturers 
• Transportation 
• Sanitation 
• Construction Product Supplier 
• Heavy Equipment Deal 
• Hotel Properties 
• Convenient Stores

Highlights & Features – Group Captives
    • Premiums are developed based on each individual’s actuarial loss history 
    • Lower overall fixed costs Group purchasing power 
    • Market fluctuations are minimized 
    • Each member retains 100% of any underwriting profits + investment income 
    • Networking and exchanging of ideas with peer companies 
    • Customized claim/risk control services and heightened safety awareness 
    • Reduction in the amount of time involved in the annual renewal process