What is a captive account?
Captive Account means the account maintained by the Company with The Bank of N. T. Butterfield & Son Limited in Bermuda, which account is identified as Segregated Account PP72022, a segregated account pursuant to the Universal Re-Insurance Company Act 1999, a Private Act of the Bermuda Legislature.
How does a captive work?
The captive provides the owner or its affiliates with insurance coverage for risks that the owner wishes to retain, and the insured entities pay premium to the captive. Any profits made by a captive are retained within the parent company's group rather than being 'lost' to the insurance market.
What does captive mean in insurance terms?
Issue: In its simplest form, a captive is a wholly owned subsidiary created to provide insurance to its non-insurance parent company (or companies). Captives are essentially a form of self-insurance whereby the insurer is owned wholly by the insured.