Capstone in Negotiations to Acquire Captive Portfolios

February 11, 2019 (Houston, TX) – Capstone Associated Services, Ltd. is in negotiations to acquire captive insurance portfolios from captive managers. Capstone initiated its expansion program in 2018 and has been fielding calls from sponsors looking to either exit the small captive business or combine forces, taking advantage of Capstone’s deep operational capabilities.

The captive insurance industry is experiencing a shift from independent captive managers offering limited services to the more integrated, multi-disciplinary approach now necessitated by the market. More than two decades ago, Capstone pioneered the comprehensive turnkey approach for captive planning where the captive manager joins with affiliated team members in offering the broader range of services needed to successfully address the planning.

A Capstone spokesman explained, “It is now recognized that only addressing administrative tasks, as is typical for a captive manager, is insufficient for most captive programs. What captive planning calls for is a range of professionals offering coordinated services under the umbrella of the captive manager. The so-called “captive manager” of the past leaves the client having to assemble its own team, which rarely succeeds in practice. Among the critical aspects of captive planning left unaddressed by this limited approach are often tax, corporate, financing, regulatory, and policy manuscripting services. Not having a coordinated program usually leaves the client in a weakened position. And when the independent auditors, regulators or taxing authorities make inquiry, everyone scrambles.”

“More recently, captive managers have been taking a hard look at what is required to keep regulatory and tax compliant,” commented Stewart A. Feldman, Capstone’s CEO and General Counsel. “It is imperative that captive management firms move away from siloed and limited administrative functions, and take on responsibility for the captive’s operational success. As part of Capstone’s expansion efforts, our affiliates are acquiring existing captive management portfolios and then offering clients a comprehensive range of services usually needed for a captive’s success.”

Clete Thompson, Vice President - Business Development, is leading Capstone’s acquisition efforts.

“We’re receiving inquiries from captive managers which recognize the need to either bulk-up to provide the broader range of client services or to sell their captive portfolios,” commented Thompson. “Moving forward, clients want a more comprehensive alternative risk planning program with a multi-disciplinary team at the helm to handle the various issues. It is a step in the right direction for the captive industry.”

Thompson continued, “For 21 years, Capstone has provided exceptional management of captive insurance companies – offering the broadest range of services and leading to the highest success rate in the industry. Our goal is to continue to lead the industry forward. In this regard, we have been approached by captive managers who have not been able to offer the necessary services required for a broad service captive. We have also been approached by captive managers which haven’t had the operational success in running captives that Capstone has had over the last two decades. In taking on new books of business, Capstone can work to plug holes in existing planning situations.”

Both joint venture and outright portfolio acquisitions are under consideration. Interested prospects should contact Clete Thompson, Capstone’s Vice President-Business Development at WEB_TEL.

About Capstone Associated Services, Ltd.

Capstone Associated Services, Ltd. is the most integrated and comprehensive captive sponsors for mid-market businesses. In association with The Feldman Law Firm LLP, Capstone administers captive property & casualty insurance companies that provide alternative risk financing throughout the U.S. Now in its CAP_YEARS_SUPER year, Capstone leverages an award-winning, multidisciplinary approach to captive planning, providing turnkey captive services to businesses with uninsured or underinsured risks. Capstone has led more than CAPTIVE_FORMATIONS distinct captive formation.

The team’s expertise spans the whole range of captives operating under IRC Sections 831(a), 831(b) and 501(c)(15). Capstone's approximately 50-person staff includes Chartered Property & Casualty Underwriters, Associates in Risk Management, accountants and administrators, in addition to the affiliated law firm's tax, corporate, financing and litigation experience, along with risk managers, property & casualty professionals, outside CPAs, and actuaries. Together, this team offers middle market companies the most comprehensive risk planning solution available in the marketplace.