Captive Quantified

Captive Quantified is the first tool of its kind. It not only evaluates the feasibility of a captive and helps choose the best domicile for your unique needs, this tool also performs the financial analysis and due diligence you need to demonstrate the value of forming a captive to internal stakeholders.

This powerful model is unique in performing the stress testing and financial analysis you require without the time or burden to your company resources. It is web based and interactive, dynamically accounting for a variety of factors relevant to your organization in a matter of seconds. Within this uniquely controlled, quick and dynamic platform you will immediately see the impact of scheduling divestitures, examine loanbacks, stress test your internal rate of return, and assess expanded utilization.

  • Fast, simple output for clear communication
  • First model of its kind to adjust and perform pro-forma analysis in a live, interactive platform.
  • The tool connects to our suite of risk-specific quantification models, providing best-in-class risk clarification for a breadth of insurable risk.

Why should you use Captive Quantified?

  • Perform the financial due diligence you require:
    • Detailed interactive value assessment of the captive proposition from both the captive’s and the parent company’s perspectives
    • A detailed pro-forma analysis of your financials before and after forming a captive
    • Live and interactive stress testing: change any assumption and test any scenario in seconds to evaluate capital adequacy, explore captive expansion, and more
  • This model goes a step beyond the typical actuarial inputs you have seen for other captive feasibility modeling. It uses loss projections at confidence levels and in doing so provides a dynamic output sensitive to loss outcome variability.
  • Examines utilization and financial planning to project well beyond 5 years into the future.
  • Can accommodate the financials of an existing captive to examine changing future utilization parameters and the associated financial impacts
  • Assess nearly anything you can do with the capital that is deployed in your captive including asset loanbacks and dividends.
  • Discover the best domicile for your unique needs and preferences.

For whom is it appropriate?

  • Captive Quantified is designed for all clients with all sizes of risk.
    • There are options to turn on and off IRC 831B (small insurance company election) and 953D (allows offshore insurance companies to be considered US Taxpayers)
  • This tool is useful for any company that wants to explore the cost comparison among setting up a captive, traditional insurance and retaining risk on balance sheet.

What geographies does this tool support?

  • Captive Quantified is a global tool, supporting all geographies.
  • The initial release uses US GAAP Accounting for all pro-forma analysis. It also allows four different location specific parent company perspectives to determine the best domicile for your captive.
  • We will add International Financial Reporting Standards in subsequent release of the tool.

When should you use Captive Quantified?

  • Use this tool when evaluating the feasibility of a new captive or when considering adding or removing risk types from an existing captive.
  • Use it when considering the most favorable domicile for your captive. This tool evaluates domiciles based on your company profile and priorities.

What can I do with information gained from Captive Quantified?

  • Assess the potential value proposition of a captive compared to purchasing insurance or retaining risk on balance sheet
  • Identify the best combination of risks to include in your captive with a pre-determined level of capitalization – optimize capital deployed to maximize value gained.
  • Examine the impact of initial capitalization and determine potential future need in re-capitalizing the captive.
  • Discover the best domicile based on your unique needs and financial profile in a dynamic client engagement process
  • Stress test any inputs or scenarios in a matter of seconds.

Future Enhancements

  • We are in the process of adding International Financial Reporting Standards as an alternative to US GAAP.