Marsh are to be congratulated again (this is the tenth edition) for the release of its annual captive report. The captive industry is often accused of secrecy, and this publication imparts interesting information about a material cohort of the global captive population across all domiciles worldwide. What would be really enlightening would be for the other global captive managers to release similar information about their portfolios.
The analysis of growth in terms of risks written, source and domicile is always of interest. I calculate a GPW to net assets ratio of well over 200% for Marsh managed captives. Interesting, as it contrasts with a recently released report by FERMA that indicated captives of European parents having a comparable ratio of 140%
What is clear is the rise of the small entities in the captive space. Could we be seeing the evolution of captives with the smaller, more nimble, captives (mammals?) overtaking the traditional large vehicles owned by multinationals (dinosaurs?)? Certainly in numbers, but the multinational captives won’t be extinct for a while yet dispute challenges such as BEPS scrutiny
Captives remain a valid risk financing option in today’s changing business landscape.
View the report here
Malcolm Cutts-Watson
Founder and MD
