How Much Capital Do Captives Need?

Tuesday, November 27, 2018

Reserve Your Seat

Recording Date: Tuesday November 27, 2018


Like all insurance companies, captives need capital to cover adverse events. Unlike commercial insurers, captives have a lower need for consumer protection against insolvency due to their parent ownership. So how much capital does a captive really need? In this webinar we look at the capital needed to start a captive as well as the appropriate levels of capitalization for mature captives. Specific topics addressed will include:

  • Statutory capital requirements.
  • Collateral: why is this needed and how much?
  • Risk based capital,
  • Capitalization ratios and how captives compare to commercial insurers.
  • How the rating companies view captives and their capitalization needs,

The webinar is suitable for both current and prospective captive owners in understanding their capital needs.


Michael O’Malley, Managing Director, Strategic Risk Solutions. Mike leads Strategic Risk Solutions’ consulting practice providing feasibility studies, financial analysis and strategic reviews for single parent, cell and group captive programs. He has over 20 years’ captive consulting experience and has been at the forefront of some of the industry’s major innovations including the first DOL approval to insure employee benefits in captives and the creation of the world’s first series LLC captive. 

Fred Eslami, Associate Director, A.M. Best. Fred has ten years’ experience rating domestic and off-shore captive insurance companies, including single parent, group and cell captive insurers. Fred is also leading A.M. Best’s Cyber Security initiative for both property casualty and life/health insurers. Prior to joining A.M. Best, Fred was a vice president with Radian Group’s financial guaranty team and served for fifteen years in various risk management and reinsurance positions. 

Jonathan Stark, Consultant, Strategic Risk Solutions. Jonathan provides feasibility consulting, financial analysis and strategic reviews for single parent, cell and group captive programs. Prior to joining SRS, Jonathan was the Lead Senior Captive Financial Analyst in the Captive Insurance Companies Division of the North Carolina Department of Insurance.

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