Captive Closure Services

How do you release your captive’s embedded value?

Many companies seek to rationalize their captive arrangements and release capital or simply seek to exit third party lines of business to enable their captive insurance affiliates to focus on core group insurances.

PricewaterhouseCoopers is the Global leader in assisting owners and shareholders of insurance entities to extract surplus value and bring closure to their discontinued insurance holdings. Whether you are seeking the controlled, accelerated, wind down of an entire insurance captive, or simply wish to exit discreet lines of insurance business in order to reallocate capital, we are able to assist you achieve your aims.

Why seek finality?

The use of a captive insurer is a well-accepted and useful risk transfer mechanism. In a climate of rising rates and restricted coverage, captives have frequently delivered cost savings and invaluable in-house expertise in risk management and loss prevention.

Extensive consolidation in most industry sectors has often resulted in companies maintaining duplicate captive arrangements that require rationalizing. Many captives have also written third party legacy insurance and reinsurance business, not always profitably, that now require servicing, incurring administrative expenses and requiring capital support that could otherwise be deployed elsewhere.

How can PwC add value?

Restructuring and rationalization of captive arrangements can mitigate exposures to legacy liabilities, generate cost savings and financial value through:
 

  • Prevention of deterioration of reserves on third party business and release of redundant reserves;
  • Protection of reinsurance assets through accelerated collection activity;
  • Savings in ongoing administration and management costs;

PwC can assist clients reorganize their insurance captive arrangements in the following ways:
  • Accelerated portfolio de-scaling through commutation advice and support;
  • Whole Captive or Captive closure through structured exit mechanisms such as Schemes of Arrangement or statutory Liquidation;
  • Performance and process improvement in operational areas such as claims handling and reinsurance; and
  • Actuarial support in valuing and managing complex related or third party exposures.

Why is PricewaterhouseCoopers the right choice?

PwC's extensive experience and in-depth knowledge of the insurance industry has allowed us to maintain the largest presence of the Big Four firms in the global insurance market.

In addition, we currently audit more than 40 percent of the Global Top 50 insurance companies and serve more than 4,000 insurance companies and groups around the world. We provide tax, risk management, actuarial, assurance and business closure services to more than 500 captives globally.

We believe that our multi-disciplined team approach distinguishes PwC in the captive insurance and alternative risk transfer arena. PwC closure specialists have a global focus with resources based in all major insurance, reinsurance and captive centers.