$1M Annual Profit Unlocked Through Captive Solutions Strategy

Challenge

A more than 8,000-acre historic lodging, dining and recreation property with over 2,400 employees was an existing single parent captive looking to leverage its surplus and equity position to expand captive operations. The captive manager, at the time, had been remiss in providing proper strategic consulting and planning services. The result was a missed opportunity by the captive to leverage an available large untapped surplus.

The company engaged with the Hylant Global Captive Solutions team to complete a strategic review analysis of the captive with an aim to:

• Ensure the captive’s maximum optimization as the company’s wholly-owned insurance company;
• Uncover opportunities to formally insure uncovered or under-covered company risks;
• Determine where gains from total company cost efficiencies could leverage the captive’s equity position; and
• Create a structured plan offering third-party coverage to enhance the company’s client experience

Solution

Through the Hylant Global Captive Solutions team, the company was able to:

• Realize a 15% reduction in transfer premium by leveraging the captive’s equity to increase corporate retentions;
• Add $780,000 of premium to the captive, while reducing the expense ratio to under 4%; and
• Create a strategy for the captive to offer third-party coverages generating roughly $1M of annual profit.