AM BestTV: Rated Captives Build Surplus, Outperform Commercial Sector, Says AM Best Associate Director


OLDWICK, N.J.–(BUSINESS WIRE)–In this AMBestTV episode, Fred Eslami, associate director, AM Best, examines a new report that finds captive insurance organizations rated by AM Best have been growing surplus, returning dividends and reporting better combined ratios than the overall commercial insurance sector. Click on to view the entire program.

Eslami highlighted how the captive industry did in 2018.

“The captive industry has consistently outperformed the commercial market by double-digit percentage points,” said Eslami. “Additionally, the industry has increased its surplus for the past five years by $3.1 billion. It also has contributed $3.5 billion in policyholder and stockholder dividends. The increase in surplus, which is organic, and the segment’s operating performance and returned earnings, shows the strength of these companies in terms of resiliency, as well as the acceptability by the policyholders and the industry itself.”

Going forward, Eslami believes that emerging technologies will drive change in the captive industry.

“Challenges or opportunities include innovation and technology that captives have taken on. The potential, for example, for blockchain is large in the industry. The report also notes that captives have increased their writings on cyber,” he said.

To access a copy of this special report, titled, “Rated Captives Continue to Build Upon Strengths,” visit

The AM Best-hosted webinar on the state of the captive insurance market can be viewed at

AMBestTV is covering the Vermont Captive Insurance Association’s annual conference. Exclusive interviews at the event will be viewable at as they become available.

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Lee McDonald

Group Vice President, Publication and News Services

+1 908 439 2200, ext. 5561

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