Although there are many types of Captive insurers — from the very large self-insured health plans at Fortune 500 companies to the much smaller group professional liability entities — they share a basic characteristic: They are entities that have decided to manage and take control of their own risks.

Captive insurers often need more support than traditional insurance companies, as they frequently have limited internal resources. At AAM, we have many years of experience in serving Captive insurers of all types and sizes. We have worked with risk retention groups, single parent Captives, group Captives, segregated cell and self-insurance entities, and we offer the full array of resources to meet their needs.

Advice and industry context

AAM offers this market an exceptional depth of industry expertise. With almost three decades of experience serving nearly 100 insurers, we can provide you with advice and industry context so that you can make the right decisions for your members.

Sophisticated analytics

Newer, smaller Captive insurers may start out with relatively straightforward investment strategies. Yet as they grow, many reach a point where they realize that they need a more targeted approach for aligning investments with the liabilities they are insuring.

At AAM, we employ a wide range of expertise and tools to help determine the optimal strategy for you. Our peer analysis service can benchmark your company across multiple parameters, so you know if you are taking on too much — or too little — risk. Asset/liability modeling can show you how the risks in your portfolio can amplify or counteract risks in your underwriting process — and point out ways to bring these risks down to acceptable levels.

Coordinating complex relationships

We can also work very effectively with virtual corporations in situations where your board outsources key services such as investments, claims processing, premium collection and actuarial services to a team of outside vendors. We have considerable experience working directly with boards or through any intermediary you choose. However our relationship is structured, we will coordinate closely with the other members of your team, so that we can invest and advise you appropriately given your specific set of goals and constraints.

An array of appropriate investment strategies

All of AAM’s investment strategies were designed for insurance company clients, tailored to provide consistent, predictable returns to meet your liability needs. Core bond offers diversified exposure to investment grade bonds. Structured products gives you access to the additional yield potential of mortgage- and asset-backed securities. Convertible bonds can provide insurers with the long-term upside potential of equities with the stability of bonds. If your company is taxable, you may wish to consider our tax advantaged strategy, which opportunistically shifts its exposure to taxable and tax-exempt bonds to maximize after-tax returns. We can customize this strategy — and help you avoid AMT exposure — with our Dynamic Tax Analysis, a tool to pinpoint the optimal mix of taxable and tax-exempt securities for your specific company.

Services and insight to support your organization

We support our investment offerings with specialized support in accounting and reporting. In addition, we’ll provide you with access to our industry-leading thought pieces, white papers and updates on accounting and tax law changes.