PMA Insurance Group -- Captives

PMA CAPTIVES

Whether the preference is to own or rent, The PMA Insurance Group can provide your client with an established insurance product to take risk on their primary losses while participating in the potential underwriting profit and associated investment income*.

Since 1993, PMA has been structuring both rent-a-captive and wholly-owned captive programs. We currently manage $36 million in written premium for captives. Partnered with PMA's servicing capabilities, captive clients also receive one of the most reputable claims and risk control services available in the market.

Lines of Business

PMA will provide coverage in captives for the following lines of business:

Workers' Compensation
General Liability
Commercial Auto Liability

Premium Requirements

Minimum premium thresholds are as follows:

Single individual insured - $1,000,000
Group or association - $1,200,000 ($50,000 minimum account size)

Classes of Business

The risk appetite of PMA for captives is varied. Recent written captives include:

Auto dealers and suppliers
Equipment dealers
Manufacturers
Family restaurant chains
State university
Hospital
Healthcare/Nursing Homes
Social services
Contractors
Restaurant franchises

Rent-a-Captive Domiciles

Clients seeking a rent-a-captive product can select between two licensed domiciles:

Bermuda - largest captive domicile in the world. Bermuda combines a sophisticated regulatory structure with experienced insurance professionals.
Cayman Islands - segregated cell structure available in one of the fastest growing captive domiciles. Access to over 50 Scudder Funds for investment flexibility*.

Access to PMA Services

PMA Captives provide clients with the highest level of service, including:

Claims handling
Risk control - qualified specialists dedicated to identifying and controlling losses
Specific and aggregate reinsurance - specific retentions starting at $250,000
Actuarial and financial analysis expertise

Submission Requirements

Submissions to PMA must include the following for each line of business submitted:

Last five years of recently valued loss information including claim count
Written explanation for all losses in excess of $50,000
Audited (if available) exposure information (e.g., payroll) for the last five years
Last two years of audited financial statements
Details on expiring program, (e.g., expenses and retentions)
Other information helpful to PMA includes:
- Desired specific retention and aggregate attachment levels
- Marketing efforts currently activated or proposed
- Reasons for exploring a captive approach by client
- Current collateral requirements for client

Licensing

PMA is rated "A-" by A.M. Best and is licensed in all 50 states, the District of Columbia and Puerto Rico.

PMA Captive Resources

Additional information regarding PMA's captives and the captive industry:

PMA Captive Brochure (pdf)

Captives, A Viable Risk Transfer Option (Review of PMA's captive operations, Directions newsletter, August 2006)

PMA Groups and Programs

Just starting out in the group or program arena and unable to take risk? Check out PMA's Groups & Programs. Get the same quality of service for your group of insureds without the financial burden of providing collateral to a captive.

* The PMA Insurance Group cannot guarantee returns to policyholders. Returns are dependent upon the earnings of the Company and the approval of the Board of Directors.

For more information about PMA Captives, contact:
Jeff Packard
Captive Manager, Risk Management Services
1-800-222-2749, x. 5280