Own your risk.

An infinite number of possibilities.

Retain, finance and manage your own risk with an enterprise risk captive.

Once viewed primarily as a solution to counter rising premium costs, captives offer numerous potential benefits that are difficult to match.

Why create a captive?

A captive can be structured to potentially build up underwriting profits on a tax-deferred basis.  Should the captive meet certain risk distribution requirements and qualify as an insurance company, they can then elect to be taxed only on investment income.


Premiums paid to the captive by the company are typically tax deductible and since no federal income taxes are paid on underwriting income, a captive with low losses relative to premiums can create significant tax advantages for ownership.

What is an enterprise risk captive?

A captive insurer is a legal entity formed primarily to insure the risks of one corporate parent company, or a number of affiliates, thereby reducing the parent company's total cost of risk.

The term "enterprise risk captive" refers to a captive insurance company typically created by businesses writing less than $2.4M (indexed for inflation) in annual premium.

Affluent Families

Who can benefit from a captive?

Captive insurance companies are like fingerprints.  No two are alike. 


Good candidates for an enterprise risk captive insurance company typically have at least one of the following criteria:


  • Annual Revenue of $10M or more

  • 30 or more Employees

  • Annual, uninsured losses of $100K or more

  • $200k or more in annual, P&C insurance premiums

Thorson's Captive Services

Learn more about how we can help you.


  • Completion of insurance application documents and related documents in the jurisdiction of formation

  • Initial underwriting

  • Drafting of policies

  • Consulting regarding capitalization requirements, entity structure and formation

  • Analysis of reserves, permitted assets and compliance with regulatory agencies

  • Coordination of actuaries


  • Assist in policy issuance and if needed, selection of fronting carrier

  • Assist in the negotiation of reinsurance agreements

  • Prepare necessary financial statements for both regulatory and internal needs based on One Wealth and client accounting records

  • Prepare federal income tax return

  • Assist auditors and insurance department examiners

  • Exit strategy studies




29899 Agoura Rd #110, Agoura Hills, CA 91301 | 818-889-7240



12 E 49th St #2603, New York, NY 10017 | 212-644-8205

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