A.M. Best just released a report on the captive insurance market. It’s titled, the U.S. Captive Insurance: Stepping In Amid Capacity and Pricing Challenges. Best says — in general — captives are generating profits and gains in surplus.
Captives — the report says — are outperforming insurers in the commercial market.
The pretax operating income is $1 billion. That’s down from $1.1 billion generated last year. The combined ratio five-year average is 84.5. It’s way better than the 99.4 generated by the commercial casualty insurers.
Between 2017 and 2021, captives put $4.3 more in their year-end surpluses and they gave $5.8 billion to stockholders and to those getting policyholder dividends.
Investment returns in 2021 rose just a bit over 2020. When combining them with higher capital gains, investment returns rose to 4.1% from 3.9%
Captives are also increasing in number.
Source link: Insurance Journal — https://bit.ly/3vTXLUF
The Captive Market — Thriving These Days
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