Captives have many befits, from reducing risks to providing companies with financial and tax benefits. Intuitive Captive Solutions (Intuitive) delivers turnkey solutions for forming and managing captives that make the process a low-cost, high-benefit solution.
Reducing risk
Risk management is the primary reason to create a captive. By creating a captive, a company can:
- Insure the uninsured or uninsurable risks a business faces
- Protect assets
- Reduce dependencies to other financial institutions and exposure to systemic risk and economic volatility
Taking control of costs
Companies often find that launching a captive will help them gain better control of costs while providing additional financial benefits including:
- Leverage against third-party insurers when they submit unjustified price increases or questionable coverage changes
- Recapture investment income and manage cash flow
- Capture underwriting profits
- Reduce costs, particularly with operating expenses
- Gain control over selecting the risks to cover, costs, and claim settlement amounts
- Increase net worth
- Increase capacity through reinsurance
- Strengthen the financial outlook for a business
Intuitive’s business is focused only on captives. As such, we maintain a high level of expertise on tax codes, and all other regulatory issues that could impact the captives we manage. We help our clients obtain tax befits associated with enterprise risk captives, including:
- A pre-tax reserve to manage risks
- Deferment and conversion of tax obligations
- Favorable tax rates when transferring captive capital to children or grandchildren
If you’d like to learn more about how a captive can help your company, please feel free to contact us.
