The American Hardware and Lumber Insurance captive is open to new members “more than ever before”, according to the company’s president and CEO, Scott Reynolds, speaking to Captive Intelligence at this year’s Bermuda Captive Conference.
“So as long as they meet that need, and we feel like we can offer a competitive product, that will produce a profit for the other members, then they would qualify for the captive,” he said in an interview featured on GCP #73.
Reynolds explained that at one point in time, you could only be a member of the captive if you were a “true value” hardware store. Now, he said, the captive is open to any retail business in the hardware store and building material dealer industry.
The captive provides cover for all commercial lines of business, including workers compensation, general liability, property, auto, umbrella, and inland marine. However, Reynolds highlighted that the company provides other lines outside of the captive.
The lumber captive is a Class III Bermuda mutual which insures “hundreds, and perhaps thousands” of hardware store owners throughout the US, which in turn become members of the captive insurance company.
Reynolds said the captive targets a 55% loss ratio, which they have accomplished.
“That allows us to pay all our expenses and still produce a profit so that we can pay dividends,” he said.
“We also want to grow, so that’s the second most important measure, which has been challenging in recent years.”
Reynolds said that as well as providing loss control services to help members mitigate exposures to loss, when there is a claim “we don’t just hand it over to the TPA or an insurance carrier”.
“We ourselves get involved, we have a philosophy of fighting claims if we feel like our insured was not negligent,” the CEO said.
Regarding the Bermuda Captive Network that was launched in February 2022, Reynolds said that he was “very excited”.
“It should be really good, offering many more networking environments and opportunities and educational opportunities,” he said.
Reynolds noted that overall, he believes there’s “no place like Hamilton Bermuda” to have your captive based. He said: “It’s a rich, dense, centre of resources, and when you come to Hamilton, you can get so much business done – it’s the insurance capital of the world.”