Legacy Solutions for Captives
- Actomate
- Jul 23
- 1 min read
Legacy—or runoff—solutions are underutilized in the captive insurance market despite their growing adoption in commercial P&C insurance. These tools help captives manage old liabilities, free up trapped capital, and improve overall balance sheet efficiency. Through mechanisms like loss portfolio transfers, novations, and commutations, captives can exit legacy obligations and reallocate reserves. Providers have developed sophisticated platforms to tailor legacy strategies for captives, enabling leaner operations and capital gains. As captives mature and accumulate historical liabilities, legacy solutions offer a strategic way to optimize capital, reduce administrative burden, and reposition for future underwriting.
Source: Captive International
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