Services for Captives

Actuarial Solutions provides a variety of services to captive entities, including pure captives, association captives, industrial insured captives, agency captives, and risk retention groups.

Reserve Analysis

  • Projection of ultimate loss and loss adjustment expense (LAE)
  • Determination of liabilities for loss and LAE on a nominal (undiscounted) basis
  • Calculation of discounted liabilities
  • Assessment of reserve adequacy and derivation of needed IBNR reserves
  • Statements of Actuarial Opinion
Feasibility Studies
  • Estimation of prospective loss and allocated loss adjustment expense (ALAE) cost
  • Expense analysis
  • Premium determination
  • Assessment of needed capital
  • Pro forma financial statements
Determination of Funding Level
  • Prospective loss forecasts
  • Projection of associated expenses, including ALAE, claims administration fees, taxes, assessments and reinsurance premiums
  • Reflection of time value of money
Allocation of Funding Level
  • For group captives, determination of each member's contribution using exposure and individual experience
Other Services
  • Risk transfer studies
  • Determination of the ability of a captive to issue a dividend
  • Review of reinsurance needs and the cost of reinsurance
  • Estimation of cost impact of individual members joining or leaving a group captive
  • Expert testimony
  • Review captive and risk retention group (RRG) feasibility studies submitted to insurance departments as part of the licensing process
  • Work for insurance departments on the actuarial portion of financial examinations for existing captives and RRG's

 

Web Resources and Links for Captives