Captive Insurance
Own your risk. Build your asset.
Captive insurance programs for businesses ready to move beyond the standard market — structured, compliant, and built to perform as both a risk management tool and an investment vehicle.
What is a captive insurance program?
A captive is a licensed insurance company owned by the business it insures. Instead of paying premiums to a third-party carrier and losing that capital, a captive allows your business to retain underwriting profit, build reserves, and in the right structure, create a tax-advantaged asset. We design, place, and manage captive programs through Benefit Re — our licensed carrier.
Benefit Re
Our licensed captive carrier
831(a) & (b)
Both structures available
MBA TPA
Third-party administration
Captive Structures
831(a) vs 831(b) — which structure fits your business?
The right structure depends on your premium volume, risk profile, and financial goals. We evaluate both before making a recommendation.
Standard Captive
For larger premium volumes
An 831(a) captive is taxed as a standard insurance company on its net income. It's appropriate for businesses with higher premium volumes where the tax treatment on underwriting income is favorable. There's no cap on premiums, and the captive can grow into a significant balance-sheet asset over time.
- No premium cap
- Taxed on net underwriting income
- Suitable for larger risk programs
- Builds long-term reserves and surplus
Small Captive Election
For businesses under the premium threshold
An 831(b) captive elects to be taxed only on investment income — not on underwriting income — up to the annual premium threshold set by the IRS. This creates a significant tax advantage for businesses that qualify, allowing premiums paid to the captive to be deducted while the captive accumulates reserves tax-free on the underwriting side.
- Premiums deductible to the operating company
- Underwriting income not taxed (up to threshold)
- Annual premium cap applies
- IRS compliance and proper risk distribution required
Benefit Re
Our licensed carrier for captive programs.
Benefit Re is a licensed insurance carrier operated within the Health Logistics Group ecosystem. When we design a captive program, coverage is housed at Benefit Re — giving our clients a carrier relationship that's aligned with their advisory relationship, not a third-party carrier with no stake in the outcome.
- Licensed carrier — not a fronting arrangement
- Aligned with your advisory relationship
- Part of the Health Logistics Group ecosystem
- Supports both 831(a) and 831(b) structures
How it works
From evaluation to in-force program.
Feasibility review
We evaluate your current premium spend, risk profile, and financial goals to determine whether a captive makes sense and which structure fits.
Program design
We design the captive structure, coverage lines, premium allocation, and reserve strategy — in coordination with your tax advisor.
Domicile and formation
We handle the formation process, including domicile selection, licensing, and regulatory filings through Benefit Re.
Ongoing management
MBA TPA handles third-party administration — actuarial, claims, and compliance — so the program stays clean and defensible.
Captive insurance programs involve complex tax and regulatory considerations. Tax treatment depends on individual circumstances — consult your tax advisor before entering a captive arrangement. FRA evaluates risk and places coverage; captive programs are housed at Benefit Re.
Is a captive right for your business?
The FRA Report includes a captive feasibility review for businesses that qualify. No obligation — just a clear picture of whether it makes sense.