Captives and Captive Cells
A Willingness to Share the Risk
Do you take a long-term view of property loss prevention? Are you willing to share some risk? Owning a captive can be a rewarding alternative to risk financing. A big plus: any surplus in the captive can be reinvested. The caveat: resource and administrative costs can be cost-prohibitive.
Not ready for a full commitment to captive ownership? Consider a captive cell. For many, it's an affordable way to enjoy the benefits of a captive without the upfront costs, capital investment or significant maintenance costs associated with forming and managing an owned captive.
FM Global offers captive cell solutions through its wholly owned captives in Vermont and Bermuda.
IS A CAPTIVE CELL RIGHT FOR YOU?
If you’re looking for all the benefits of a captive but aren’t ready to invest in an owned captive, a captive cell solution can be a fast and easy alternative. Here’s how it works: Your company “leases” a protected captive cell. The financial arrangement includes working capital, surplus and licenses from a captive owned by FM Global. We also arrange the necessary administrative, claims, engineering, reinsurance placement and admitted fronting services. Under the protected cell structure, there is no pooling of risk between cells.
For most clients, FM Global is able to establish a captive cell within just a few weeks. It’s easy to set up and control, regardless of size. Administered by an expert third party, it provides similar benefits to an owned captive, only without the complexity, upfront investment, capital requirement and maintenance requirements.