Captive Services

Throughout Lockton, our Captive experts consult on the formation, implementation and ongoing renewals for the complex and technical aspects of captive programs. We work with you to determine which captive management company, domicile and services best fit your needs.

The model of our Captive group is objective and collaborative. And, since our group does not act as a separate profit center, you may consult our team members as often as necessary to navigate your way through each step of the process.

You will benefit from our expertise in:

Allocation Methodologies
Arrangement for Marketing Reinsurance
Excess Reinsurance Placements
Financial Reporting Consultation
Insurance Policy Consultation
Loss Portfolio Transfers
Premium Recommendations
Process Planning

You will benefit from our expertise in coverage including:

Employment Practice Liability
Environmental Risks
Errors and Omissions
Hedges
Professional Liability
Property Deductibles

We have experience with the following Captive domiciles:

Arizona
Barbados
Bermuda
Cayman
Guernsey
Hawaii
South Carolina
Vermont

Lockton Service

Service starts with listening. We take the time to understand your specific goals, design a program that fits your needs, aggressively negotiate coverage, and implement a service plan. You will have the same dedicated service team throughout the entire process which allows us to anticipate your needs and create accountability.

It’s all about you. As a private, family-owned company, all our Associates focus solely on you, our client, rather than public shareholders.

Long-term thinking. Clients stay with us based on our expertise, creative solutions, seamless global resources and outstanding service. Our client retention rate of 95 percent reiterates our commitment to each and every client.

Success Stories

Solving Big Problems Fast

A major health system wanted to take control of volatile physician professional liability costs. Within 45 days, Lockton wrote a business plan, created an insurance policy, established rates and structured reinsurance for a Risk Retention Group that helped the system provide coverage for more than 180 top doctors in its competitive market.
Maximizing Available Collateral

A large food processor and distributor faced lending restrictions that prevented it from using certain assets in its captive. After renewing the lender’s contract, Lockton investigated ways to put the assets to work. The bank agreed to Lockton’s proposal, but with a high lender’s fee and a letter of credit for far less than the assets’ face value. Lockton identified an alternative bank with a much lower lender’s fee and a letter of credit much closer to the assets’ value. This maximized the company’s borrowing capacity by $61 million while lowering its annual lender’s fees by $2.2 million.
Restructuring Puts Unused Collateral to Work

After reviewing a manufacturing firm’s financials, Lockton found opportunities to improve its captive. Lockton identified several flaws in the program. Lockton proposed a complete rewrite of the program’s structure in addition to an evaluation of potentially unused assets that could be put to work. The restructuring plan returned with better results than initially expected and Lockton uncovered substantial additional unused assets as well. This saved the company $1.5 million in fixed costs and alleviated $55 million of collateral letters of credit.