Finance, Investments, and Accounting
Expected Adverse Development as a Measure of Risk Distribution
Risk distribution is a prerequisite for an insurance transaction to be deemed to have occurred and therefore achieve deductibility of premium for tax purposes. Captive owners seeking to determine whether their captive has sufficient risk distribution have a new methodology to consider in expected adverse development. Read More
5 Questions Concerning Your Captive's Asset Allocation Model
Given recent changes in investment markets, captive insurers should take another look at their asset allocation models. A recent Strategic Asset Alliance presentation presents five potential shortcomings in assets allocation models and five key questions to ask your investment manager concerning their asset allocation model. Read More
Insights into the Avrahami and Feedback Decision
The US Tax Court decided two cases, Avrahami v. Commissioner and Feedback v. Commissioner, and the formation and operation of a captive insurer. Read More
2018 Musings on Captive Insurer Investments
What does 2018 have in store for captive insurer investments? We look at investment return assumptions and new accounting regulations. We also suggest some questions that should be raised by the captive board members concerning the investment portfolio. Read More
How the 2017 Tax Law Affects Captive Insurers
Bruce Wright of Eversheds Sutherland gives his take on the Tax Cuts and Jobs Act (2017 tax law) and primary impacts on the captive insurance industry. Read More