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AM publishes revised criteria for rating cell entities 

AM Best has released its revised criteria procedure for rating individual cells which is effective immediately. 

The ratings agency initiated a call for comment related to this criteria procedure on 2 December 2024 and the comment period closed in February 2025. 

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Captive Intelligence provides high-value information, industry analysis, exclusive interviews and business intelligence tools to professionals in the captive insurance market.

Alliance PCC launched to make captives more “accessible” to mid-market  

Alliance Captive Management (ACM) recently launched ACM Advantage Protected Cell Company (PCC) because it wanted captives to be more accessible for middle-market businesses. 

ACM provides a number of services to captives including regulatory compliance, formation and licencing, and reinsurance solutions. 

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Captive Intelligence provides high-value information, industry analysis, exclusive interviews and business intelligence tools to professionals in the captive insurance market.

AM Best revises Terra RRG outlook to negative 

AM Best has revised the outlook to negative from stable for the long-term issuer credit rating (ICR) and affirmed the financial strength rating (FSR) of A (excellent) and the long-term ICR of “a+” (excellent) of Terra Insurance Company. 

Terra is a Vermont-domiciled risk retention group writing professional liability insurance. 

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Captive Intelligence provides high-value information, industry analysis, exclusive interviews and business intelligence tools to professionals in the captive insurance market.

AM Best affirms rating of UFP Industries captive 

AM Best has affirmed the financial strength rating of ‘A’ (excellent) and the long-term issuer credit rating of “a” (excellent) of Bermuda-domiciled Ardellis Insurance. 

The outlook of these credit ratings is stable. 

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Captive Intelligence provides high-value information, industry analysis, exclusive interviews and business intelligence tools to professionals in the captive insurance market.

Drake Plastics files second lawsuit against IRS concerning 831(b) captives 

Drake Plastics Ltd. Co. and its parent company Drake Plastic Products Inc., have filed suit in the US District Court for the Southern District of Texas, challenging what it argues are “egregiously aggressive and wrongful enforcement actions” by the Internal IRS in relation to 831(b) micro-captives. 

This comes following a lawsuit filed in the same court by SRA 831(b) Admin and Drake Insurance Co. and Drake Plastics Ltd. Co. in June against the IRS due to claims of abusive regulatory overreach. 

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Captive Intelligence provides high-value information, industry analysis, exclusive interviews and business intelligence tools to professionals in the captive insurance market.

RVnGO forms captive for auto liability and property damage for RV rentals 

RV rental company, RVnGO has formed a captive to provide auto-liability and property damage coverage for RV rentals booked on its website. 

RVnGO claims to be America’s first free person-to-person RV rental and sales marketplace. 

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Captive Intelligence provides high-value information, industry analysis, exclusive interviews and business intelligence tools to professionals in the captive insurance market.

As insurance supply fragments, captive value increases – Joe Peiser

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The “fragmentation” of insurance supply globally is adding greater value to captive strategies as insureds look for more flexibility in their risk transfer options and sources of capital, according to Joe Peiser, global CEO of Aon Commercial Risk.

Peiser, who’s role oversees all commercial lines of insurance at Aon, all segments and industries, as well as the captive consulting and management business, was speaking on the latest episode of the Global Captive Podcast, recorded at the Vermont Captive Insurance Association (VCIA) conference earlier this month.

He said captives is “absolutely” an important part of the business for the global broker, as more clients are using them as a “critical” part of their risk financing strategies.

“What I have seen over the past five, six, seven years is a greater awareness among companies’ executive levels – C-Suites, CEOs, CFOs – about awareness of volatility, awareness of the insurance programmes their companies have, the risk financing programmes,” Peiser explained.

“The reason for that attention is because there has been an overall inflation of loss activity in our business. That’s true globally, but it is pronounced in the United States.”

That awareness is increasing demand, with more companies and their executives looking for modern decision-making tools.

“They want to know what is the trade-off between buying insurance and retaining risk, and when it comes to retaining risk, they want to know what’s the most effective way to retain that risk, what’s the most strategic way to retain that risk? And more and more often the answer is a captive,” he added.

Peiser said a captive provides a “rigorous way to measure self-insurance” and flexibility in accessing different types of risk transfer supply at a time when the insurance supply is fragmenting.



“The volatility that organisations face… That same volatility is affecting insurers’ portfolios,” he explained.

“And while they’re used to volatility, that’s the business they’re in, it’s become so unpredictable because we don’t know where the next big liability loss is going to happen.

“We used to be able to count on cat losses in Florida and California, but now we’re seeing wildfires all over Europe and we’re seeing freezes in Texas. The result is that insurers are taking smaller and smaller bets on any one client, any one insured.

“As we see rising demand for risk transfer, particularly catastrophic levels, we’re seeing a fragmentation of the supply of risk transfer. So because of that, we have to find new ways to access different forms of capital, and it’s not coming in the traditional ways, it’s coming in as insurance linked securities, it’s coming as parametrics.

“A captive is a great way to access that type of capital. So, it’s not only an important risk retention tool, it’s also a very strategic risk financing tool.”

Peiser also discussed the ongoing “transformation” of Aon’s captive business, including better utilisation of technology to improve its captive management operations to “free up” its captive professionals to have more strategic conversations with clients.

Captive Intelligence reported in December that Ciarán Healy would be taking over leadership of Aon’s global captive business on 1 January, 2025 and work continues to reorganise and refocus the unit.

Peiser is also seeing a growing demand for captive resources within Aon more broadly, particularly for those leaders that work with the larger clients.

“What I see within Aon is all of our leaders who are dealing with larger and larger clients clamouring for more captive resources, more strategic thinking in our captive group and really linking that captive group into other parts of Aon that are dealing with the issues that I mentioned earlier,” he added.

“We created a construct at Aon called Risk Capital. that’s our commercial risk team that I lead, and our reinsurance team. And the reason we created that is because we want to access all these different forms of capital for our clients and captives are right at the centre of that.”

Listen to the full, exclusive interview with Joe Peiser, global CEO of Aon Commercial Risk, on the Global Captive Podcast here, or on any podcast platform. Just search for ‘Global Captive Podcast’.

Three Ways Risk Managers Can Demonstrate the Benefits of Captive Expansion to Senior Leaders

Graham McCarthy is a Partner in McGill and Partners’ Specialty Broking team. He leverages his expertise in international reinsurance markets, captive management, coverage structures, and carrier relationships to deliver focused and tailored solutions for complex client needs. He brings over 21 years of experience in the international insurance industry, having held senior roles across broking, captives, and risk consulting. Graham holds a Bachelor of Science degree and is ACII qualified.

Captive insurance offers many potential benefits, including reduced premium expenses, more control over insurance program structure, access to different pools of capital, including reinsurance and ART markets, and additional investment income. But, growing a captive company demands resources. Risk managers need buy-in from senior leadership in order to get the capital necessary to expand, and that means demonstrating ROI in clear and definitive terms. To demonstrate the ROI of captive expansion effectively, risk managers need to do these three things:

Speak the language of the CFO

      A CFO needs to see numbers. Risk managers excel in managing budgetary spend usually associated with readily available information such as insurance premium and expected claims, (the technical account),and may not necessarily have available other variables which contribute to the group cost of insurance in terms of profit and loss, but they will need to place their captive plans into a long term financial forecast to make a clear case to their CFO. This means understanding the accounting language and principles that a parent company uses, as well as aligning to the parent reporting standards (e.g. IFRS or GAAP) and translating things like claims, including IBNR treatment and investment income into balance sheet items.

      A risk manager will know what amount of premium goes into the captive, and how much goes out in claims. They can calculate the daily expenses, and reasonably project investment growth. Bringing all of that over into a 5- or 10-year financial plan whilst incorporating the capital adequacy and the opportunity cost of capital to the group, is a key requirement to demonstrate how a captive will support the goals and objectives of the primary business long-term. The process defines a captive in terms that are more relatable and clear to the C-suite whilst also leveraging risk transfer markets.

      Highlight flexibility in the face of uncertainty

        Insurance purchasing decisions are dictated largely by market dynamics, and no risk manager can predict with 100% certainty how markets will shift over time.

        As renewal time approaches, a risk manager may be faced with sudden hardening markets and rising rates, or, depending on topical issues, they could experience a significant contraction of cover. The risk manager might not agree with how a market is moving, or believe that a jump in premiums is justified and they are unlikely to be willing to rely wholly on the vagaries of the insurance market.

        There are many other ways to tap into risk capital. For example, captives can assume greater risk and access reinsurance markets for the transfer of large and unpredictable risks, and this gives them the ability to adjust retention levels to gain greater control over how they respond to market fluctuations, and how significantly those fluctuations affect overall budgetary spend.

        Choosing to retain more risk in the captive versus leaking more premium into the market helps companies weather the ups and downs of market cycles with greater predictability. With greater control over the price of risk that goes into a captive, and clear visibility of the cost of reinsurance, comes greater long term budget stability despite inconsistent responses from the insurance market.

        Focus on benefits of loss prevention and data ownership

          Risk mitigation and loss prevention are critical to an effective risk financing strategy.

          Data plays a key role here. Claims data helps to unveil where a company’s key exposures lie based on historical loss records. In addition, exposure data can supplement claims data and is typically included in actuarial modelling which helps inform the company about key exposures, including location sensitive Nat Cat losses.  Data collected through site inspections can highlight opportunities for different mitigation controls. Identifying what loss prevention measures will have the greatest impact on a captive’s bottom line is made possible through the collection of detailed, site-specific, and business-specific data.

          In the insurance world, there are always discussions around who owns data and whose duty it is to protect it. Mature captive companies with their own loss engineering survey programs have control over their own data and can more seamlessly put this data into action to positively affect risk profile. This allows for a more holistic view of risk management across the company as a whole and allows for more productive conversations with (re)insurance markets when renewal time rolls around.

          The effects of targeted loss prevention efforts flow through the entire risk financing strategy, allowing for more confident decision making around risk transfer and retention, which again helps to control spend and keep the captive budget aligned with the broader financial strategy of the parent company.

          Conversations around captive insurance strategies are multi-faceted and complex, but risk managers armed with the right data — financial, risk and otherwise — can paint a picture of how greater control and ownership over the risk financing strategy afforded by a robust captive translates to greater long-term stability for parent companies.

          GCP #125: Joe Peiser, Global CEO, Aon Commercial Risk

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          Joe Peiser, Aon Commercial Risk

          In episode 125 of the Global Captive Network, supported by the EY Global Captive Network, Richard is joined by Joe Peiser, Global CEO of Aon Commercial Risk.

          Richard met Joe at the VCIA annual conference in Burlington, Vermont in August where they also spoke on the closing keynote panel together.

          Joe shares his perspective on the captive market, its importance to Aon and where he sees it going in the future.

          For the latest news, data-driven analysis and thought leadership on the global captive market visit ⁠Captive Intelligence⁠ and sign up to our ⁠twice-weekly newsletter⁠.

          MAXIS GBN appoints Dulin, Rizk to global BD team

          MAXIS Global Benefits Network has appointed Alexandre Rizk and Nannecy Dulin to director positions within its global business development team. 

          Rizk has been promoted to director, global relationship management, effective 1 August 2025. 

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          Captive Intelligence provides high-value information, industry analysis, exclusive interviews and business intelligence tools to professionals in the captive insurance market.