The good news: The outlook for the captive industry is stable, as participants exercise their financial flexibility in a softening market. The bad news: U.S. captive insurers' net income declined approximately 66% in 2008 for a composite of 186 captive companies represented in an A.M. Best Co. special report. This reflects realized losses of $1.2 billion for the year, a large percentage of which resulted from one company's investment losses.
Additionally, A.M. Best found that net underwriting income actually increased over the prior year—evidence of the captive industry's typical underwriting discipline, and its inclination not to rely on investment income. And, overall, captives generated gross investment income of $1.8 billion in 2008, down only 7% from 2007.
Register or login for access to this item and much more
All Digital Insurance content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access