Industry: Financial Institutions
Type of Service: Planning & Analysis
Engaged as advisor to chemical manufacturer. Company was not able to place a needed coverage in the commercial insurance market; as such all losses were being paid using after tax dollars.
Established a captive to provide coverage using the policy language desired the client. Premiums paid to fund the coverage incurred a nominal tax rate, approximately 3%. Investment income earned by the company helped fund losses, underwriting gains inured to the benefit of the client as well.