Lionheart Insurance Group’s Structured Risk Finance unit provides customized risk-finance solutions to clients who have the sophistication and financial ability to finance their own risk—but who may ultimately conclude that owning and running their own insurance company is not their intended goal. These clients may be hesitant to commit the capital or the human resources needed to establish a captive—or perhaps they’re concerned about the complex tax landscape involved. In any case, middle market companies can still enjoy the tax advantages large corporations have benefited from for years by participating in a Rent-a-Captive or other structured risk program.

Rent-a-Captive Programs

If you are in this position, Lionheart Insurance Group’s Rent-a-Captive programs may be the ideal alternative. These programs can provide you with an efficient way of achieving the many benefits of captive insurance—without committing the resources and capital needed to operate your own captive. While you may still be required to provide a certain amount of capital to support your risk, it is generally lower than the necessary amount of statutory capital and we handle the lion’s share of captive administration for you.

Insured Participation Program

Another attractive alternative may be Lionheart’s Insured Participation Program which allows you to participate in the profits generated through a Rent-a-Captive structure—without actually having to invest in the captive. Under the Insured Participation Program, you can insure certain commercial property and casualty risks through a Lionheart Insurance Group facility obtaining true risk transfer and the associated tax benefits while participating in the upside of the risk.

Our Insured Participation Program is highly selective and is restricted to companies with extremely sound financial positions, superior loss experience and a dedication to risk management. The program is most effective for clients dealing with the following issues:

• Expensive fixed cost programs
• Volatile swings in premium
• Unreasonable demands for collateral
• Little control over the claims settlement process
• A desire to participate in the profits of superior loss experience
• Unavailability of coverage
• High deductible

In the traditional insurance market, insureds are encouraged to maintain sound risk management and loss control programs in order to keep losses to a minimum. However, in the traditional insurance market, keeping losses to a minimum benefits the insurance company much more than it does the insured. Lionheart Insurance Group's Structured Risk Finance unit works to align the interests of the insured with the insurer. Only when these interests are aligned, can you truly expect to get the most leverage for your risk financing dollar.