Group Captive to Single-Parent

The article compares single-parent captives—wholly owned by one firm—with group captives, which are collectively established by several companies. Single-parent captives offer maximum control, customization, and the ability to retain most underwriting profits, but they come with high capital and operational demands. Group captives reduce individual costs through shared expenses and risk pooling, making them appealing to mid-sized firms with lower entry thresholds. While group captives involve shared decision-making and potential exposure to others’ losses, they still deliver tailored coverage and stability for members. Deciding between the two structures depends on factors like firm size, capital availability, control preferences, and risk tolerance.

Source: Captives.insure

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