Captive Insurance Solution
for a Construction Client

A privately held $200M operator with deep retention experience and strong loss history had reached the limit of what the rated market would reward. The owner wanted full control of underwriting, claims, and reinsurance — and a structure that captured the underwriting profit the rated market kept absorbing.

A single-parent captive was the right answer. The work was building it correctly, in 90 days, without compromising the existing program during the transition.

Key Issues Included:

• Rated-market underwriting profit donated annually despite strong losses
• No internal mechanism to capture or invest float on retained losses
• Reinsurance strategy controlled entirely by the fronting carrier
• Claims handled to carrier reserves rather than ownership economics
• Limited transparency on actuarial assumptions driving renewal

RIG coordinated domicile counsel, the fronting carrier, the reinsurance program, and the actuarial work needed to launch a single-parent captive inside 90 days — without a coverage gap or disruption to operations.

Captive Setup:

• Domicile selected against tax, regulatory, and capitalization needs
• Fronting carrier negotiated with appropriate fronting fee structure
• Reinsurance program built around target retention layers
• Actuarial work supporting capitalization and pricing assumptions

Lines Placed in the Captive:

• Workers Compensation primary layer
• Commercial Auto primary layer
• General Liability primary layer
• Specialty lines reviewed against retention appetite

Claims & TPA:

A TPA was selected and onboarded with owner-level transparency. Reserves, settlement strategy, and subrogation are now managed against ownership economics — not carrier reserves.

Stewardship & Governance:

• Annual audited financials and actuarial review
• Quarterly captive board meetings with full transparency
• Annual stewardship review against rated-market alternatives

The integrated program produced measurable improvements across the operation, including:

• Captive launched and bound inside 90 days with no coverage gap
• Full ownership of underwriting, claims, and reinsurance strategy
• Underwriting profit retained inside the captive year over year
• Investment income on retained losses captured for the first time
• Reserves and settlement now managed to ownership economics