Investment management for captive insurance
We advise clients on approximately $4.2 billion in captive and insurance pool assets. Our dedicated team’s depth of experience allows us to seamlessly integrate with our clients, their captive managers and reporting resources.
We're able to serve as investment manager, trustee & fiduciary for captive insurance needs
What is captive insurance?
Captive insurance is financial risk management tool used to transfer some of an organization’s risk to a controlled insurance entity. That captive insurance entity can focus on the specific risks of the insureds and can potentially improve risk management and long term value.
Possible benefits of developing a captive insurance entity may include:
- Greater visibility into insurance costs
- Improved claims management
- Enhanced operating practices
- More structured risk management approaches
- Alignment of retained risk strategies with organizational objectives
Regions is a trusted leader in investment management for captive insurance
Investment leadership & customizable portfolios
- Dedicated teams in both fixed income and equities
- A holistic approach to investment management, rooted in industry research
- Flexibility for clients to create model or custom portfolios to align investments with regulatory needs, risk profile, and financial objectives
Depth of captive & reinsurance experience
- Deep understanding of unique challenges and opportunities associated with captives, including regulatory, tax, risk profile, and financial components
- For reinsurance needs, experience to maximize benefits and manage compliance, including possible pledged and collateralized assets, as well as line of credit requirements
Trustee & fiduciary services
- A single, reliable partner combining fiduciary oversight and investment management1
- Safeguard assets to assist in meeting future claims
- Manage diversified portfolios with cost and risk discipline that aligns with client’s time horizon and risk profile
Comprehensive review of trust agreements
- Helps ensure compliance, reduce risk, and keep strategies aligned with core liabilities
- Aligns investments to follow the Investment Policy Statement (IPS) and regulatory guidelines
- Supports proper liquidity and risk liability matching to meet claims when they arise
Robust performance reporting
- Connectivity with industry-leading software Clearwater Analytics®
- Comprehensive insights into integrated accounting, compliance, insurance-required risk profiles and performance reporting
- More timely decisions with accurate data that’s reconciled and validated daily
Why choose Regions for captive investment management needs
Our team possesses the knowledge and experience necessary to navigate the complex landscape of captive investment management, including:
- Specialized experience with insurance portfolio management
- Comprehensive understanding of premium, residual and profit components and how to manage them
- Experience using custom asset liability modeling (ALM) frameworks to balance risk management goals with corporate investment objectives
- Trustee services to help safeguard assets, ensure compliance and sufficient liquidity to meet claims and statutory reserve requirements
Choosing an investment manager for your captive
Businesses with consistent and predictable insurance needs may find that establishing a captive insurance company, essentially their own insurance entity, offers a compelling alternative to traditional carriers.
Captive insurance or self-insurance a financial risk – management strategy used by large companies in the U.S. since the 1950s is again making headway among small and midsize organizations looking to pare business insurance costs, improve risk management and create long–term value.
