Title Slide JUN 8 – 10, 2015 GROUP CAPTIVES.
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Transcript of Title Slide JUN 8 – 10, 2015 GROUP CAPTIVES.
![Page 1: Title Slide JUN 8 – 10, 2015 GROUP CAPTIVES.](https://reader035.fdocuments.net/reader035/viewer/2022070408/56649e695503460f94b65a0f/html5/thumbnails/1.jpg)
Title Slide
JUN 8 – 10, 2015
www.bermudacaptive.bm
GROUP CAPTIVESGROUP CAPTIVES
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Group Captives
Speakers:•Carol Frey, Divisional VP, Great American
Insurance Company•Robert Bernatchez, Principal, Brisk Management
Services LLC•Scott Penwell, Partner, Rhoads and Sinon LLP•Geoffrey Gardner, Senior Advisor, PRP Performa Ltd.
Moderator:•Dennis Silvia, President, Cedar Consulting LLC
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Herding Cats
Organizing a Group Captive program has been likened to “herding cats”.
Multidiscipline discussion with a focus on:•Vision, from an organizer’s perspective•Practical considerations from a front company’s perspective•Governance from a legal perspective•Asset planning and management from an investment manager’s
perspective
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• Customized program design– Reduce cost of risk for participants– Specialized claims handling– Bespoke Loss Control services
• Capital and Letters of Credit
• Plan to reach initial critical mass and maintain growth with best in class participants
Organizer’s Vision
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• Transparency and fairness to participating members
• Balancing individual needs with what is in best interest of the group
• Long term flexibility to meet participant’s future needs
• Recouping start up costs
Organizer’s Vision
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• Feasibility Analysis– Full submission including currently valued loss runs and
exposure data with actuarial support– Coverage Templates– Member-to-Member Risk sharing plan– Reinsurance types and attachment points
• Commitment on the part of organizer and participants– Volume– Distribution– Patience
Practical Considerations
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•Vendor Selection– Loss Control/Risk Management Services– Captive Management– Front Company– Reinsurer
•Tax status…To be or not to be 953(d)
Practical Considerations
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•Owned Group Captive versus Segregated Account Structure– Capital vs. Collateral– Startup and Closing captive– Flexibility vs. Sponsor Control
•Tax Considerations
•Documents and Agreements
Governance and Control
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•Controlling and Governance– Officers and Directors– Committees– Codes of Conduct– Independent Directors– Dividend Distributions
• Timing• Mutual Agreement
– Membership• New members• Members exiting
Governance and Control
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•Selection and evaluation of investment management
•The asset allocation decision– Need for letters of credit linked to investment– Balance dynamic of maximized returns and liquidity/capital
preservation
Asset Planning and Management
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•Board of Directors evaluation of investment performance
•Advantages/Disadvantages of bundling asset management with custody and LOC services
Asset Planning and Management
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Q&A