Market Overview

A.M. BestTV: Rated Captive Insurers See Strong Performance Compared with Commercial Peers


In this A.M.BestTV episode, Susan Molineux and Fred Eslami,
both associate directors, A.M. Best, review the performance of
rated captive insurers ahead of the annual Vermont Captive Insurance
Association (VCIA) conference, taking place in Burlington, VT. Click on
to view the entire program.

In A.M. Best's latest report on the U.S. captive industry, it states
that the population of rated captives posted another solid year in 2017,
once again outperforming its counterparts in the commercial casualty

"Captives are excellent in risk management and mitigation practices,"
said Eslami. "They are intimately connected with either members or the
parent company within the enterprise risk management framework that they
have. That makes risk, exposure and avoidance of any exposure and
mitigation the key for them, which is why we see a 12 to 13-point
difference between the loss ratio on the captives versus the commercial
casualty market."

Molineux highlighted how Vermont has maintained its standing despite
more competition from other domiciles.

"Vermont, year after year, solidifies its position as a leading captive
domicile," said Molineux. "There are a number of other domiciles out
there, in the United States and abroad, which companies can consider
when choosing a domicile. Vermont has a focus on innovation. They have
recently released some affiliated reinsurer legislation, as they
continue to raise the bar."

To access a copy of this market segment report, titled, "For the Rated
Captives, It Is Déjà Vu, All Over Again," visit

For full video coverage of the VCIA 2018 conference, including exclusive
executive interviews, visit

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