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: