The Captive Market — Thriving These Days


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 —

About PIA Western Alliance

The Professional Insurance Agents Western Alliance is a membership organization promoting and enhancing the success of independent agencies seeking to grow, learn and be heard within the industry.


More Industry News