Profit, breakeven or loss making – The varying captive strategies 

• Shift towards more captives looking to generate a profit through third party business 
• Captive surplus utilised to enhance risk management at parent level
• Profitability sometimes more important for group captives 

When it comes to generating surplus, captive owners operate differing strategies, with some insureds intent on posting a large profit, while others utilise the captive primarily to reduce premium spend and remain content to simply breakeven. 

Captives can also be used as business enablers, comfortable to operate on loss making basis if it improves profits or generates additional revenues for other parts of the group.