This article was first published by Captive Review, and written by Richard Cutcher.
California-based Ascension Insurance Services is expecting to add a second cell to its segregated portfolio company (SPC) in the Cayman Islands.
Captive Review reported in February 2015 AARIS Insurance Company SPC, owned by Ascension Insurance Services, had formed the jurisdiction’s first portfolio insurance company (PIC) – AGG 1 PIC.
Legislation enabling PICs, comparable to incorporated cell companies (ICCs) in Guernsey, came into effect in January 2015.
“We were up against a tight deadline because the renewals for the members were in February and the legislation was only passed the month before,” Paul Tamburri, west coast risk management practice leader at Ascension Insurance Services, told Captive Review. “We had to get the fronting in place and ensure the carrier understood they were now contracting with the PIC rather than AARIS.”
When AGG 1 PIC was established it originally had 13 members. That has since grown to 15. All members are agriculture businesses with California or Arizona risks writing workers’ compensation.
The rush to find a solution for the original 13 members came about after the owners of a separate Bermuda segregated account company (SAC) changed hands and the clients in two of the three cells wanted to continue working with Ascension.
Tamburri said one of the reasons the SPC option was so attractive to Ascension was they saw the potential to offer a PIC solution to other groups of clients.
“We are already working on a segregated portfolio which we hope to get running by 1 April,” he added. “That cell will be for another group of agricultural clients and is also for workers’ compensation.”
Ascension also works with the trucking industry and education institutions. A large part of its client base is non-profits and the firm is considering setting up another vehicle especially for medical stop-loss.
“The SPC is a big opportunity for our company as a whole, and not just for this one PIC,” Tamburri said.
This article was first published by Captive Review, and written by Richard Cutcher. Captive Review was launched in 1999 and caters for the risk management and captive insurance communities.
Date: Tuesday, February 23 2016
Time: 10am PST
Who Should Attend: Forward thinking Sr HR and Financial Professionals in the Technology Industry
Duration: 60 minutes
Captive Launch Date: January 1 2017
While projections vary, the indisputable facts are that your health care costs will continue to increase, the competition for talent will intensify and you will be tasked with offering a competitive, relevant benefits package that attracts and retains talent. Consider this:
- Almost 50% of CFOs rate the cost of benefits and attracting & retaining talent as top concerns in 2016. Click HERE for survey
- 78% of hiring managers said finding highly-skilled tech talent will be a top hiring priority in 2016. Click HERE for survey
- Median unemployment and starting salary for tech workers in the Bay Area is <3% and $176k, respectively compared to national averages of 7% and $107k
If you have a Total Rewards philosophy and an interest in innovative strategies, funding your benefits through the Technology Captive and sharing risk with like-minded technology leaders may be the solution for your 2017 calendar year.
Join us to learn more about the timeline, opportunities, risks and rewards of funding your benefits through a Captive.