{"id":48219,"date":"2026-07-30T18:32:00","date_gmt":"2026-07-30T16:32:00","guid":{"rendered":"http:\/\/stocks-future.com\/?guid=9e4f59020cbb83cda7de91851482167a"},"modified":"2026-07-30T18:32:00","modified_gmt":"2026-07-30T16:32:00","slug":"bests-market-segment-report-rated-captives-continue-to-demonstrate-financial-stability-in-evolving-risk-landscape","status":"publish","type":"post","link":"https:\/\/stocks-future.com\/?p=48219","title":{"rendered":"Best\u2019s Market Segment Report: Rated Captives Continue to Demonstrate Financial Stability in Evolving Risk Landscape"},"content":{"rendered":"

OLDWICK, N.J.--(BUSINESS WIRE)--#insurance<\/a>--AM Best<\/b>-rated U.S. captive insurance companies not only continued to outperform their counterparts in the commercial market but also provided a less costly route that generated an estimated $8.2 billion in savings for their organizations over the past five years, according to a new Best\u2019s Market Segment Report<\/i>.<\/p><\/a><\/a>

\nEven as more-affordable capacity materializes in the traditional commercial segment, the captive market continues to exhibit sustained growth, exemplified by new formations and the expansion of coverage into new lines. \u201cThis trend reinforces AM Best\u2019s view that captives are increasingly regarded as long-term strategic risk-financing mechanisms,\u201d said Sharon Marks, director, AM Best.<\/p>

\nFor decades, captives have proven to be an effective alternative to financing risk and have proven over time to be an effective enterprise risk management (ERM) strategy for organizations that understand their own unique risks. In periods of market hardening, captive vehicles can offer an efficient option to support a parent\u2019s or member\u2019s coverage requirements.<\/p>

\nSingle-parent captives emanate from the parent\u2019s corporate ERM strategy to provide coverages that work closely with loss control and offer products that are customized to fit the needs of the company. \u201cGiven this customization, price is not the only factor in today\u2019s market, but a well-designed captive is also about finding long-term solutions that meet the organization\u2019s particular needs,\u201d Marks said.<\/p>

\nAM Best rates over 220 captive companies globally. Approximately 70% of these captives are domiciled in the United States, with about 17% in the Caribbean and the remaining 13% in various other domiciles globally. These are comprised of single-parent captives, group captives, risk retention groups and cell companies.<\/p>

\nAmong the report\u2019s other findings:<\/p>