Marsh 2010 Captive Benchmarking Report

Marsh's Captive Benchmarking Report provides a year-over-year analysis and review of trends in the general global captive market and compares the performance and operations of captive programs against peers and similar organizations. The report has developed in recent years to become a "must have" guide for captive owners. 

Marsh's 2010 Captive Benchmarking Report — Single Parent Captives: Capital and Collateral builds on our previous years’ efforts to provide new information on key points, including captive domiciles, insurance lines, captive investments and other aspects of captive utilization.

Our group also tackles specific topics current to captive management. For example, our inaugural report began with a general captive market overview; we then proceeded to provide an assessment of the financial performance of captives by reviewing their coverages, structures and investment allocations. This year, Marsh's Captive Solutions Group examines the capital and collateral requirements of captives, highlighting and commenting on the following points:

  • analysis of premium-to-capital ratios;
  • asset allocation, considering the current economic climate and the need to ensure sufficient funds are available should the need arise to pay losses; and
  • collateral requirements, including how the collateral requirement is calculated, the most common types of collateral instruments used by captives and the cost of these collateral facilities.

Our benchmark sample comprises 750 captives managed by Marsh’s Captive Solutions Group. To ensure that the 2010 Captive Benchmarking Report focused entirely on single parent captives, we excluded captives not owned by a single identifiable parent company.

This year, in examining the capital and collateral requirements, we also highlight some of the ways in which Marsh has assisted captive owners in ensuring the efficient use of their captive’s capital and also the ways in which we have assisted clients in reducing their collateral burden.

Captive Benchmarking Services

Marsh's Captive Solutions Group, with its experience in managing captives for over 40 years, has developed benchmarking services specifically for captive owners who seek:

 

  • an overview of captive usage and strategy in comparison with their peers;
  • an assessment of the financial performance of their captive in comparison with Marsh's financial benchmarking key ratios;
  • evidence, for corporate governance purposes, that independent evaluation of a subsidiary company has taken place; and 
  • clear and concise recommended action steps based on findings.

To download the benchmarking report, please click the link in the Downloads section at the right.