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Diversification seen as way to bolster captives - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Diversification seen as way to bolster captives by Claire Wilkinson Alternative Risk Transfer/Captives Mar 11, 2026 PALM DESERT, California – Captive owners are placing multiple lines of business into their alternative risk transfer vehicles to diversify their risk portfolios and strengthen long-term financial stability, risk managers and captive consultants say. Expanding beyond single-line structures allows captives to spread volatility across multiple exposures and improve the predictability of losses, they said during a panel session Tuesday at the 2026 Captive Insurance Companies Association conference. The University of California’s single parent captive, established in 2012, now writes more than 40 lines of coverage and supports campuses, medical centers and affiliated operations, said Karen Hsi Van’t Hul, the university’s executive director of captive insurance programs. In 2018, it added a cell structure. Eureka PCC is the sponsor of two incorporated cells, Eureka One and Sequoia IC, which house certain third-party programs, such as employee life insurance and voluntary benefits, she said. The university’s captives collectively hold about $2.8 billion in assets and generate roughly $900 million in annual premium, Ms. Hsi Van’t Hul said. Expanding into multiple lines has helped the university smooth volatility across its insurance program and stabilize costs for campuses, she said. “When you have it all under one insurance company, especially with multiple lines, you can withstand some of that volatility,” Ms. Hsi Van’t Hul said. Surplus generated in one line helps offset pressures in others and provides more consistent insurance costs across the system. IHG Hotels & Resorts’ captive has expanded from four lines of coverage in 2015 to more than 20 today, said Marc Bentley, Derby, England-based head of risk finance. The program combines traditional property and casualty risks with non-traditional risks and employee benefits tied to the company’s global hotel operations. An alternative risk transfer structure wraps around the captive’s risks on an aggregate basis, he said. “As we’ve diversified and increased the number of lines we have, taking additional risk has allowed us to reduce that overall risk gap,” Mr. Bentley said. The broader mix of risks allows the captive to operate more as a traditional insurer, he said. “We understand what our risks are, what our tolerance is and then we look at the market from a transferable point of view. It puts us in control over our risk financing strategy,” he said. Adding multiple lines can reduce volatility in captive insurance programs, said Peter Johnson, chief property and casualty consulting actuary at Spring Consulting Group, an Alera Group company. “By adding multiple lines, you can really create a much more stable budgeting mechanism,” he said. Captive owners can improve efficiency by integrating employee benefits with property/casualty risks within captive programs, speakers said during a separate panel session. Lifetime Fitness adopted that strategy by adding medical stop loss to its captive when it moved to a fronting structure that increased casualty retentions, said Josh Reding, Chanhassen, Minnesota-based vice president of risk management. “We moved from a six-figure retention to a hefty seven-figure retention or captive fronting program,” he said. The company, which has more than 2 million members and operates about 200 resort-style fitness clubs, expects the change to generate roughly $3 million in initial cost savings while helping build surplus within the captive, Mr. Reding said. Adding medical stop loss with other risks in a captive can unlock new efficiencies, said TJ Scherer, vice president at Spring Consulting. 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