As a pioneer of group captives,
Captive Resources is increasingly
reaping the rewards as growth in this
sector continues to accelerate—
something that benefits the Cayman
Islands as well, says Nick Hentges
of Captive Resources.
A s he prepares to take the role of co-chief executive
officer in January 2019, Nick Hentges, current president of
Captive Resources, is in a bullish mood about the potential
growth of the company in a landscape where group
captives are becoming a risk transfer tool of choice for middle-market
companies in the US.
Hentges predicts that the growth of the market will accelerate
further—and as a pioneer and market leader in this space, Captive
Resources is set to benefit. The company currently consults to 35
captives, responsible for nearly $2.4 billion of premiums, the large
majority of which is domiciled in the Cayman Islands. That is more
than 14 percent of all captive insurance premiums on Cayman,
managed through sister company Kensington Management Group.
Hentges adds that the company remains committed to the Cayman
“In the 30-plus years we have been operating there, a lot has
changed, but we are proud that Kensington is one of the largest
private captive insurance managers there and we feel we have made
a very positive impact to the business environment and the economy
of Cayman in that time. It is a great place to do business,” he says.
Disrupting the market
Hentges expects the business to more than double in the next six
years to some $5 billion in premiums; the number of captives to grow
to 40, and the number of member companies from nearly 4,300 now,
“Thousands more mid-size businesses moving away from traditional
insurance translates to significant market disruption,” he notes. There
are plans for at least three new captives to be formed in 2019.
“We believe that the use of group captives will change the way
24 cayman captive 2019
A NEW CHAPTER
This potentially steep growth curve represents the start of a new
chapter for Captive Resources and for Hentges himself, who
explains that it represents the latest challenge in a long and
sometimes winding career, which may easily never have started in
risk or insurance, never mind captives. In the end, however, he has
followed in his father’s footsteps.
He explains that his father was an insurance agent in a small town.
Hentges never thought he would end up in insurance as well, but
he attended the University of Iowa, which offered a prestigious
insurance course run by Emmett Vaughan, a friend of his father,
who helped the university earn a distinguished reputation in the field
of insurance education in the 1970s and 1980s while mentoring
many of the industry’s top leaders.
When he graduated, he was offered three opportunities:
two in underwriting and one in the captives unit of an insurer
He selected a job as an underwriting trainee with Connecticut
General in Kansas City. The company later merged with INA to
form CIGNA. He served for eight years in progressively senior
underwriting and managerial positions.
When it comes to keeping it in the family, his eldest son started
his insurance career at Sompo, and is now employed at Captive
Resources; his middle son works as an underwriter for AIG; and
his daughter, who has just graduated, has accepted a position with