Captives
Work with us, a leader in the captives space, and we’ll bring decades of experience to your risk management solution.
Discover solutions that go beyond traditional insurance coverage with strategic captive planning. Captives allow you to pay premiums to insurance affiliates—earning investment income and underwriting profits.
You can gain greater control over your business insurance costs while improving long-term results and maximizing your opportunity for potential tax benefits. And with our long history of successful coverage solutions for captives and self-insureds, we provide the financial strength and expertise you need.
A protective partnership
Solutions for complex risks
We have been serving the Canadian market in Fronting, Captives, and other alternative risk management solutions since 1996.
Businesses are under constant pressure to stay profitable. Discover solutions that go beyond traditional insurance coverage with strategic captive planning. Captives allow you to pay premiums to insurance affiliates—earning investment income and underwriting profits. You can gain greater control over your business insurance costs while improving long-term results and maximizing your opportunity for potential tax benefits.
Our extensive experience provides the financial strength and expertise to meet your unique insurance requirements. Together, we can build long-term, mutually beneficial partnerships.
Target classes
Companies with affiliated or subsidiary insurance companies within their corporate structure wishing to retain insurance risk by having their risk reinsured to their affiliated/subsidiary entity via a fronting company.
Policy highlights
Capabilities
- Singular point of contact for all fronted coverage lines and administration (including globally admitted policy issuance)
- Flexible policy limits (dependent on type and amount of collateral)
- Standalone fronting placements
- Risk transfer placements, where needed coordinated with other Liberty units
- Captive domicile flexibility
- Underwriting expertise, including policy form review and pricing guidance
- Industry standard and/or manuscript policy forms
- Access to over 90 countries via Liberty Mutual Group or strategic partners
- Claims administration by reinsurer/insured considered subject to acceptable experience levels and appropriate third party administrator/legal counsel availability
Collateral
- Cash and/or letter of credit and/or reinsurance security agreement
- Amount and type required based on the specific characteristics of the fronting placement
Fronting fee
- Negotiable (subject to $10,000 minimum), plus applicable premium taxes, boards & bureau charges
- Claims administration fee to be charged in addition to Fronting Fee where Liberty administering claims
Capacity
Dependent on type and amount of collateral provided.
Informational requirements for fronted program
- Full underwriting submission (including loss history)
- Proposed policy and other related contracts
- Audited financials for captive/insured
- Actuarial report (where produced) on captive loss reserves
- Retained limits/coverage line profile for captive
- Other to be advised, as specific to fronting program under consideration
Our difference
- Servicing the Canadian market since 1996, providing fronting and other alternative risk management solutions
- Experience in numerous industries and sectors, including petro-chemical and manufacturing
- Seamless experience for brokers and insureds via a single point-of-contact
- Access to services in over 90 countries via Liberty Mutual Group offices, as well as its strategic partners
Liberty Mutual Canada™ is the registered business name under which the Canadian branch of the Liberty Mutual Insurance Company operates in Canada. This literature is a summary only and does not include all terms, conditions, or exclusions of the coverage described. Please refer to the actual policy language for complete details of coverage and exclusions.
