Finance, Investments, and Accounting
Portfolio Construction, Low Yields, and Inflation
Captive insurance companies should take care in constructing their investment portfolios during times of low yields and potentially rising inflation. Too many investors make the mistake of believing in the powers of the Federal Reserve and forecasts of the experts. It can pay to be cautious. Read More
Captives: Is Passive or Active Investing a Better Strategy?
The conundrum between a captive insurance company choosing a passive investment strategy versus an actively managed strategy has always existed. For a captive, the choice of an active investment strategy versus a passive one should involve considering a number of factors. Read More
"The Song Remains the Same" (The Peril of Ignoring Investment Risk)
Individuals and companies are often too quick to forget about investment risk, or assume the risk probability of the event is too small to happen. Real-life examples also illustrate that there will always be investors reaching for yield, especially in low-interest-rate environments, and when they should beware. Read More
BEAT Update: New Provisions Provide Some Help to Captives
Treasury recently issued new proposed and final regulations on the base erosion anti-abuse tax (BEAT). The new provisions provide some helpful news to captive insurance companies. Read More
Why Parents Fold Their Captive Insurance Companies
As is the case with virtually any type of business, not all captive insurance companies stay in business indefinitely. There are several reasons why parents fold their captives. Find out. Read More