Captive formation and management

Challenge Group provides its clients with a full range of services in respect of Captive program development, Captive formation and the subsequent support of new business structure.

The starting point is the theoretical and practical analysis of the proposed future activity of the company which may include:

• Identification and ranking of all possible risks
• Actuarial analysis of loss experience and loss reserves of the parent company
• Determination of the captive structure
• Definition of an optimum level of premium, self-retention and capital
• Identification of needs for “fronting arrangements” and reinsurance protection
• Tax planning and accounting standards
• Choice of jurisdiction for Captive formation
• Definition of final model of the captive program functioning

• Business plan development with detailed description of step-by-step Captive activity
• Preparation of predicted balance sheet of the company for the 3- /5-year-period based on company’s current financial indexes

Licensing

Challenge Group will organize the licensing procedure, including:

• Preparation of necessary documents for the subsequent submission to the supervisory authority (Regulator)
• Meeting with the Regulator for discussion of application details and Captive activity
• Subsequent coordination work with the Regulator to speed up the procedure of Captive formation and licensing
• Incorporation of the Captive
• Payment of necessary license, membership and annual fees  

Our services are not limited just to Captive formation and licensing - we fully support our clients after the Captive is created, including:

• Keeping of accounts
• Quarterly balance sheet preparation
• Internal audit
• External audit
• Preparation of the quarterly, semi-annual and annual financial statements and submissions to the supervisory authority

• Reserve analysis
• Pricing
• Annual actuarial report

• Development and implementation of insurance / reinsurance strategies
• ”Fronting arrangements” with highly rated international companies
• Conclusion and support of reinsurance contracts
• Preparation of documents, including: General agreements on cooperation, Cover-notes, Credit/debit-notes
• Analysis of company’s activity, preparation of reporting

• Settlement of losses
• Preparation of all necessary documents
• Disputes resolution in arbitrage
• Preparation of the quarterly reporting

• Analysis of the investment markets
• Development and support of investment programs
• Control of efficiency