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Captives can generate profits through third-party business: Panel - 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 Captives can generate profits through third-party business: Panel by Claire Wilkinson Alternative Risk Transfer/Captives Brown & Brown Mar 11, 2026 PALM DESERT, California — Captives are increasingly being used to write third-party business, such as extended warranty programs, generating underwriting profit and strengthening customer relationships, a panel of experts said. Extended warranties or service contracts are a prime example of third-party business that companies can place in captives because the coverage is closely tied to their customers and products, said Greg Myers, New York-based executive managing director at Brown & Brown Risk Solutions. He was speaking during a panel session on Tuesday at the Captive Insurance Companies Association 2026 conference. “Most programs are set up at a 70% or 80% loss ratio, so over time you’re going to get underwriting profits of 20% to 30%,” he said. Because claims may not occur for several years after the contract is sold, companies can also earn investment income on premiums held during that period, Mr. Myers said. Companies often reinsure extended warranty programs through captives, enabling them to achieve risk and gain tax and operational efficiencies, he said. Adding third-party business to captives allows companies to support other risks such as workers compensation, cyber liability and property, he said. Subaru reinsures its vehicle service contracts and other finance and insurance products through its captive insurer, Pleiades Insurance Co., domiciled in Arizona, said Carol Fritzsche, Camden, New Jersey-based associate director of risk management at Subaru of America. The captive was formed in response to the insurance crisis in the 1980s to insure Subaru’s fleet exposures, she said. The captive now writes workers compensation, marine, casualty, employee benefits, as well as vehicle service contracts and guaranteed asset protection insurance, Ms. Fritzsche said. Written premium totaled more than $240 million last year. Vehicle service contracts are a key part of Subaru’s finance and insurance program, with a penetration rate exceeding 40%, and profitable loss ratios that are linked to vehicle quality, she said. In addition to generating revenue, the coverage helps build customer loyalty by bringing drivers back to dealerships for repairs and service. “We pay what we owe,” she said, adding that paying claims promptly helps reinforce trust in the Subaru brand. Harley-Davidson Financial Services established its captive insurer, Eaglemark Insurance Co., in Bermuda in 2023, said Aubrey Wagner, Chicago-based director of revenue products at the motorcycle manufacturer. The captive reinsures service plans in the U.S. and Europe, as well as guaranteed asset protection insurance, appearance protection and other dealer protection products underwritten by third-party providers, she said. This approach provides the company with more control over underwriting and pricing decisions and better insight into loss performance, Ms. Wagner said. Cost pressures from rising labor rates, parts inflation and tariffs on imported components can increase repair costs over the life of service contracts, panelists said. Because many programs run for several years, companies must factor those risks into pricing and reserving decisions. Related News Oklahoma commissioner OKs CompSource reorganization plan March 11, 2026 Chubb recruits operations, digital chief March 11, 2026 Bill would add Parkinson’s disease to firefighter occupational illness list March 11, 2026 Tenn. judge orders specialist panel in knee replacement dispute March 11, 2026 Singapore shipowners face war risk policy cancellations March 11, 2026 Asian airlines raise fares up to 70% amid jet fuel shortage March 11, 2026 India regulator approves Allianz Jio, Kiwi insurers March 11, 2026 Greenlight Re’s profit nearly doubles March 11, 2026 Petrochemical plants face shutdown risk over Hormuz closure March 11, 2026 Facebook-f X-twitter Linkedin-in Business Insurance is a singular, authoritative news and information source for executives focused upon risk management, risk transfer and risk financing. 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