Captive Solutions

Captive Insurance Advisory: Strategic Risk Financing for African and International Markets

For certain organisations, traditional reinsurance placement is only part of the answer. Large corporates, state-owned enterprises, and insurance groups with significant retained risk may achieve greater control, improved capital efficiency, and reduced long-term total cost of risk through captive insurance structures and alternative risk financing arrangements.

Reinsurance Solutions provides independent advisory and structuring support for captive formation and alternative risk transfer. We frame this strictly as an advisory service: our role is to evaluate whether a captive is the right strategic tool for your organisation, and if so, to design and support its implementation with the same rigour and independence we bring to our broking services.

Our Capacity

Structuring Complex Capacity for Ceding Companies

Our captive advisory practice serves organisations seeking to movebeyond standard market placements and take greater ownership of their riskfinancing strategy. We work alongside your finance, risk, and treasury teams toassess feasibility, design optimal structures, and navigate the regulatoryrequirements of captive formation.

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Structuring Captive Vehicles

We advise on the full spectrum of captive structures: single-parent captives, group captives, protected cell companies, and rent-a-captive arrangements. The right structure depends on your organisation’s size, risk profile, strategic objectives, and appetite for operational complexity. Our advisory process evaluates each option against your specific circumstances, ensuring the chosen vehicle delivers the intended economic and operational benefits.

Our structuring work includes defining which lines of business thecaptive will underwrite, setting appropriate retention levels, establishingpremium adequacy, and designing the captive’s own reinsurance programme toprotect against catastrophic or unexpected loss events.

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Tax-Efficient Jurisdictions

Domicile selection is one of the most consequential decisions in captive formation. We advise on jurisdictional options across Africa and internationally, evaluating each domicile’s regulatory framework, capitalisation requirements, tax treatment, reporting obligations, and operational infrastructure.

Our regional expertise across multiple African territories gives usinsight into domicile options that many advisory firms simply cannot access.From established centres like Mauritius to emerging opportunities, we provideobjective, informed guidance on where your captive should be resident.

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Transfer Pricing Mechanisms

The pricing of risk transferred from a parent company to its captive must withstand regulatory and tax authority scrutiny. We advise on transfer pricing methodologies that are commercially defensible, actuarially sound, and compliant with the tax regulations of all relevant jurisdictions.

Getting transfer pricing right is essential to the long-termviability of any captive. Our advisory team ensures that the pricing frameworkis documented, transparent, and calibrated to reflect genuine risk transfer,not merely a mechanism for premium allocation.

Our Expertise

Our Regional Expertise and Lines of Business

Before establishing a captive, and on an ongoing basis thereafter, we conduct detailed reviews of your organisation’s underwriting approach and policy pricing. This analysis ensures that the captive’s premium levels are adequate to fund expected claims, build reserves, and generate the capital returns that justify the structure’s existence.

For existing captives, we provide independent assessment of underwriting performance, claims development, and reserve adequacy, supporting your board and regulators with the evidence they need.

Captive solutions are not appropriate for every organisation, and we are transparent about that assessment. They tend to deliver the most value for large corporates with diversified risk portfolios seeking to reduce total cost of risk, state-owned entities managing sovereign or parastatal exposures more efficiently, and insurance groups looking to optimise retentions and access reinsurance markets directly.

If our analysis concludes that a captive is not the right fit for your organisation, we will tell you. We will then recommend alternative risk financing structures, whether parametric covers, structured reinsurance, or portfolio-level retention strategies, that better serve your objectives.

A captive is a long-term strategic commitment. We provide ongoing advisory support including annual programme reviews, actuarial assessments, regulatory reporting guidance, and strategic recommendations as your captive evolves, your risk profile changes, and market conditions shift.