Segregated Portfolio Company (SPC) Captive & SPC Reinsurance Captive
The Crum & Forster Segregated Portfolio Company (SPC) Captive, launched by the Accident & Health division, is our A.M. Best A-Rated Direct writer captive which provides flexible solutions to our partners and the P&C marketplace. This facility was initially set up for international travel insurance plans and is currently looking to expand into other lines of business.
Crum & Forster Segregated Portfolio Company (SPC) Reinsurance Captive is another service A&H, and C&F, offers to provide alternative risk transfer arrangements for existing clients, new potential policyholders and various producers interested in assuming risk. The facility includes Stop Loss & Excess Medical and Occupational Accident products.
Typically captives are suitable for large policyholders, as well as producers interested in alternative risk transfer arrangements for United States and international based exposures. The captive will be made available to all business units of Crum & Forster’s Property & Casualty operations. It is domiciled in the Cayman Islands and A.M. Best has assigned the entity a Financial Strength Rating of A (Excellent), with a Long-Term Issuer Credit Rating of ‘a’ and assigned those ratings as ‘stable’.
Policies are issued by C&F SPC for and on behalf of ‘Segregated Portfolio ABC’. The Segregated Portfolio(s) are 100% ring fenced (insulated) from other Segregated Portfolio and have no recourse to any other Segregated Portfolio assets and liabilities.
What is a Captive vs Segregated Portfolio Captive?
A captive insurance company is a wholly owned subsidiary company, providing risk mitigation services for its parent, and can include partners. Typically, all operating and administration expenses, claims, risk exposure and profits are shared by the parent and partners that have formed the captive.
Crum & Forster SPC is a segregated portfolio company that consists of a core captive entity and segregated portfolios, or SPs. Segregated portfolio’s are also commonly referred to as “cells”. The advantage of an SPC is that the assets and liabilities of each cell are statutorily protected from the assets and liabilities of all other cells of the SPC. It is this protection which makes the SPC ideally suited for insurers, like Crum & Forster, with multiple programs and, in particular, where programs are offered to more than one insured.