Privately Owned Insurance Companies
The Middle Market Solution
POIC STRUCTURE
A Producer Owned Insurance Company (or POIC) is an insurance company that re-insures the risks of its owner, affiliated businesses, or a group of companies.
Motivating Factors for a Privately Owned Insurance Company?
THE VALUE PROPOSITION OF FORMING A POIC INCLUDE:
Forming a privately owned insurance company using The Latitude Plan™ allows businesses to retain underwriting profits, gain control over claims, and tailor coverage for unique risks. This often enhances tax-efficient planning strategies for reserves, improved cash flow, and investments aligned with growth and M&A activity. The structure optimizes risk management while converting insurance premiums into company-controlled assets.
Financial Advantages
Retaining underwriting profits and investment income, potential tax benefits, and lower administrative costs compared to commercial.
Strategic Flexibility
Access to premium and the ability to cover risk that traditional carriers may avoid or overprice.
Operational Control
Directcontrol over claims management, risk management, and the ability to customize policy language for niche or hard-to-place risks.
Long-Term Value
Buildingequity through an insurance vehicle that can serve as a profit center – separate from parent businesses.
MOTIVATING FACTORS
THE PURPOSES OF FORMING A POIC INCLUDE:
Risk Management Solutions
By now, you're likely seeing the powerful and flexible benefit of The Latitude Plan™. Coast-to-Coast business leaders in every industry and every sector leverage private insurance to solve problems and build assets as it relates to risk mitigation, claims control, improved cash flow, asset protection, and long-term wealth accumulation and transfer—all within a compliant insurance framework. See examples of some of our clients solutions-based approaches using their POIC.
Specialized Coverage
Specialized coverage, such as business interruption insurance or comprehensive directors and officers coverage, can be obtained at reasonable and consistent rates.
Creditors & Finance
Creditors and Finance organizations can underwrite creditor/insured coverage such as: Collateral Protection Vender single interest Other credit risks and additional self-insured risk
Construction
POICs can re-insure expensive subcontractor default, construction defects, mold, and other construction-related general liability risks, thereby improving cash flow and profitability of the General Contractor/Developer.
Medical Malpractice
Hospitals, physician groups and medical professionals can self insure all or part of medical malpractice risks, obtaining underwriting profit, and achieving better loss and claims control.
Property Coverage
Large property holders can use a POIC to re-insure completed coverage or differing layers of property coverage, thereby reducing overall insurance costs.
Non-Traditional Lines
POICs can re-insure non-traditional insurance coverages, including: equipment maintenance warranty, credit life and disability, employment practices, credit risk, post-retirement medical benefits, private mortgage insurance, extended-service warranty, voluntary employee benefits such as supplemental life, pollution liability, and medical stop-loss.
CONTACT REINSURANCE SPECIALTIES™
CONTACT US
Email: info@reinsurancespecialties.com.com
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