Captive Insurance Company:

A company which is wholly owned by another organization (generally non-insurance), the main purpose of which is to insure the risks of an organization or group of organizations. Under this plan, an insured can take advantage of the investment income from premium paid in for losses that have not yet occurred.

Rent-A-Captive:

With a rent-a-captive, a business rents space within a larger captive that provides access to the license, surplus, management and other services of the captive for a fee that may be much less than it would cost for the business to begin its own captive insurer. The captive may also have access to quality reinsurers and other expertise that the business does not. There is still the potential for investment income that is not found in a standard program.

Segregated Portforlio Company:

The benefits of s SPC include a legal separation of assets, a “firewall”, flexibility of capital, lower operating costs, easier to exit, and it can provide run off policies.

Take advantage of investment income

Rent – instead of own a captive

Separation of assets