Our captive insurance clients tend to be affiliated with healthcare entities, formed to self-insure many of the exposures encountered by hospitals and doctor groups in the day-to-day provision of healthcare services. Typically, these entities are domiciled in off-shore taxing jurisdictions, which requires us to have familiarity with the regulatory schemes associated with these different venues. The allocation strategies adopted by these organizations are usually designed to align with the profile of insurance liabilities and surplus positions, often resulting in fairly conservative allocation postures marked by meaningful weightings in high grade fixed income securities and lower use of return-seeking assets (i.e. equities).
Our captive clients rely on FIA to provide advice on investment policy, asset allocation, asset/liability management, investment manager selection, fee analysis and negotiation and portfolio construction. We then regularly monitor plan performance and recommend changes as needed. We work alongside a number of the well-established management companies in delivering our consulting services to the captive marketplace.