AM BestTV: Rated Captives Build Surplus, Outperform Commercial Sector, Says AM Best Associate Director

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FOR IMMEDIATE RELEASE

OLDWICK - AUGUST 05, 2019 03:09 PM (EDT)
In this ^AMBestTV episode, Fred Eslami, associate director, AM Best, examines a new report that finds captive insurance organizations rated by AM Best have been growing surplus, returning dividends and reporting better combined ratios than the overall commercial insurance sector. Click on http://www.ambest.com/v.asp?v=captivereport819 to view the entire program.

Eslami highlighted how the captive industry did in 2018.

“The captive industry has consistently outperformed the commercial market by double-digit percentage points,” said Eslami. “Additionally, the industry has increased its surplus for the past five years by $3.1 billion. It also has contributed $3.5 billion in policyholder and stockholder dividends. The increase in surplus, which is organic, and the segment’s operating performance and returned earnings, shows the strength of these companies in terms of resiliency, as well as the acceptability by the policyholders and the industry itself.”

Going forward, Eslami believes that emerging technologies will drive change in the captive industry.

“Challenges or opportunities include innovation and technology that captives have taken on. The potential, for example, for blockchain is large in the industry. The report also notes that captives have increased their writings on cyber,” he said.

To access a copy of this special report, titled, “Rated Captives Continue to Build Upon Strengths,” visit http://www3.ambest.com/bestweek/purchase.asp?record_code=288168 .

The AM Best-hosted webinar on the state of the captive insurance market can be viewed at http://www.ambest.tv/vcia19 .

^AMBestTV is covering the Vermont Captive Insurance Association’s annual conference. Exclusive interviews at the event will be viewable at http://www.ambest.tv/vcia19 as they become available.

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^AM BestTV covers exclusive AM Best and insurance industry information and reports, targeted topics and key developments in the insurance, reinsurance and related sectors daily. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html . View ^AM BestTV episodes at http://www.ambest.tv .

AM Best is a global rating agency and information provider with a unique focus on the insurance industry.