Captive Insurance Company Options
We provide customized private insurance company options to profit from risk.
Private insurance company options to profit from risk on a tax-favored basis
Captives can be an attractive solution for many objectives
Typical uses for captives
- Self-insure risks traditional carriers will not underwrite – for example, loss of a key customer
- Tax-favored transfer of wealth to from companies or individuals to beneficiaries
Consideration of a captive
- Profitable companies and/or wealthy individuals are the typical candidates to consider a captive
- Over a $1,000,000 in deductible premiums a year per beneficiary can be paid into the captive
- Based on the actuary’s recommendations, claims are typically very low.
- Surplus is returned as dividends or capital gains
- Note: CEB Insurance only facilitates the introduction to nationally recognized vendors in this field.
Rules/regulations for captives are set out in IRS code section 831b
- Not as highly regulated as traditional insurance companies