www.captiveinternational.com EDITOR’S LETTER 3
The sky may not
be the limit—yet
Owen Faulkner, editor, Captive International
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Captive International – ISSN
Courtesy of Marsh Captive Solutions
s we publish the second issue of our new monthly publication Captive
International, some of the key trends and challenges within the
industry are starting to become more obvious.
In this issue, Captive International speaks with Ellen Charnley,
the president of Marsh Captive Solutions who took over from Nick Durant in
October 2017, about the increasing popularity of captives that make an 831(b)
election, and other captive structures aimed at mid-size companies.
Charnley addresses concerns surrounding the scrutiny 831(b)s have been
subjected to since the Avrahami tax case, and explains how it shouldn’t put off
companies who are looking into this area to finance their risk.
At the start of 2018 there was more M&A activity, with R&Q selling its
captive management operations to Davies Group, and Alera Group acquiring
Spring Consulting Group. Not in reference to either of these deals, we speak
to Andrew Barile of Andrew Barile Consulting about what it means for clients
when their captive management is sold on to another company.
With the dust starting to settle on US tax reform, the industry is gaining
more clarity over what the legislation means for captives and prospective
captive owners, and what advice they should be seeking.
Aon Risk Finance Captive & Consulting managing director Elizabeth Steinman
explains some of the areas which may affect both onshore and offshore
captives, along with her thoughts on why she doesn’t feel the legislation will
have a significant impact on the growth of the industry as a whole.
February featured a number of significant new hires across the industry, with
leadership changes and senior hires at USA Risk Group, Captive Resources,
Berkeley Research Group, Strategic Risk Solutions and Capstone Associated
Services; see more inside.
Speaking on the potential of captives and where the industry might turn
next, Matthew Queen of Venture Captive Management explores the viability
of captives in the space tourism industry.
Captive International will be attending the Captive Insurance Companies
Association’s annual conference in Arizona in March, where there are expected
to be numerous sessions on innovative new ways to use captives, business
strategies, and external disruptions and challenges in the industry today.
Evidently the sky isn’t the limit with captives, and it will be exciting to see
what the coming months bring. l