Contractor Joins Captive, Reduces Premiums by 34%

Opportunity

Since opening its doors, a commercial general contractor has worked closely with Hylant to find traditional insurance placement. Over its first six years in business, the company achieved 100% year-over-year growth with very few claims.

After running initial projections, Hylant's experts determined that captive utilization could generate a profit center for the contractor that would multiply over time based on the company's performance.

The progressive-minded owners were keenly interested in a path forward that would allow them to recapture favorable loss results and invest in themselves.

Solution

Hylant’s client executive educated the company’s owners about captives and demonstrated how Haven Re, an existing captive, could provide the company with better control, enhanced cost savings and long-term stability over its annual insurance expenditure.

The Hylant Global Captive Solutions team introduced the program's structure, discussed the submission timing and developed an overall strategy to determine the viability of Haven Re for the contractor. While the initial up-front cash outlay was slightly higher than the company's existing guaranteed cost program, the client was glad to switch to Haven Re.

Since joining Haven Re, the company has been insulated from double-digit rate increases in the standard insurance market, giving it a competitive advantage over its peers. Additionally, the company's favorable loss experience has it on track to achieve a significant portion of its annual premium spend back in the form of a dividend on top of the double-digit rate reductions they have enjoyed since joining the captive.