Captive Program

How to Turn Risk Management Into a Profit Center with a Captive Insurance Company

Have you ever noticed the tallest buildings on a city skyline?

These are often insurance companies and banks. It’s obvious they make significant profit. When your company insures itself through its own insurance company, referred to as captive insurance, you get to keep the profit and accumulate loss revenues for the future. A captive can help lower your net insurance premium spend.

Here's how.

No matter what industry you’re in, you likely pay for insurance.

Captive insurance companies typically provide combined insurance and tax savings of 15-50%.

There’s a reason why 90% of Fortune 1000 companies utilize captive insurance.

Anatomy of a Captive


Captive insurance is often less expensive than commercial insurance. Captives are licensed insurance companies and have access to reinsurance markets (wholesale).

And, you own the insurance company, so the premiums are paid to you—you keep the profit after claims are paid out.

For example, if your insurance company receives $5 million in premiums, pays $500k in operations, pays $2.5 million in claims and pays $1 million for reinsurance and fronting then you have $1 million in profit.


All or a portion of premiums are tax-deferred as loss reserves.

In the above example, potentially $1 million tax-deferred* can be invested!

Investment Income

Invest large, tax deferred part of funds.

As an example, after one year, at 5% interest, you’ve earned $50,000.

Insurance Reserves

Using the same example, the insurance company has $1,050,000 at the end of year one.

  • Avoids sharing risk with “bad actors”
  • Reduces or helps control insurance costs
  • Creates investable surplus
  • Improves company’s bottom line
  • Creates profit center
  • Helps stop or limit insurance rate increases

Ready to get started?

The first step to operating a captive is to enlist an experienced captive manager.

The process of forming and operating the captive is a complex undertaking as captives are highly regulated and the highest level of competency and expertise is critical to ensure compliance and receive optimal benefits. TCE Insurance Services provides turnkey captive management, structuring captives to optimize both risk and asset accumulation so that your captive is on sound footing and in good standing throughout its lifetime.

* Tax treatment may vary

Reduce Commercial Insurance Costs By Up To 50%



Bundled Program

The Bundled Program allows insured businesses to reinsure their commercial insurance premiums to a captive insurance company they own and retain up to 50% of their premiums and risk. The business owner can retain their existing broker.