Captive Structures

JLT Insurance Management will help you create, license, manage and, when necessary, shut down any captive structure. These structures are as diverse as the types and needs of our clients:

Single Parent Captives

Larger entities, including multinational corporations, typically use this type of structure to insure and manage varied risks of the parent company and any subsidiaries. They can also use the structure to insure affiliated third-party risk.

Group Captives

JLTIM is a specialist in creating and managing group captives. These structures are owned by a group of non-related entities, which often find the capital requirements of a single parent captive too high and commercial insurance either unavailable or unaffordable.

Group captives typically insure similar risks. By banding together, they lower the cost of entry and operation compared to a single-parent captive. They also benefit from sharing risk management best practices with loss control experience and, when experience is good, return of profits.

Association captives and agency captives are also types of group captives, but cater to specific associations and its members or to insurance agencies.

Micro Captives

Captives formed as small insurance companies under Internal Revenue Code 831(b) have come under scrutiny from the IRS for potential tax abuses. The reality is when a properly structured micro captive is formed for legitimate business reasons and qualifies as an insurance company, it could qualify as a small insurance company under IRS rules by making the 831(b) election, while increasing profitability.

Micro captives qualify under IRC 831(b) if they have less than $2.2 million in gross premium annually and must meet specific structuring criteria. Choosing this type of captive may be advantageous, in part, because underwriting income is not taxed.