How a $100M Contractor Cut Insurance Costs by 34% and Gained $1.1M in Equity with Haven Re Captive Strategy

Challenge

Since 2018 when the company opened its doors, a commercial general contractor has worked closely with Hylant to find traditional insurance placement. In that time, the company saw 100% growth year-over-year with very few claims.

After running initial projections, Hylant's experts realized captive utilization could generate a profit center for the client that will multiply over time based on the company's performance.

The progressive-minded owners were keenly interested in a path forward that would allow them to recapture favorable loss results and invest in themselves.

Solution

The company's dedicated client executive began educating the company on captives and demonstrated to the owners that Haven Re, an existing captive, would provide the company better control, enhanced cost savings, and long-term stability over its annual expenditure.

The client executive engaged with the Hylant Global Captive Solutions team to introduce the program's structure, discuss the submission timing, and develop an overall strategy to determine the viability of Haven Re.

While the initial up-front cash outlay was slightly higher than the company's existing guaranteed cost program, the client was glad to switch to Haven Re.

Since joining Haven Re, the company has been insulated from a wave of double-digit rate increases in the standard insurance market, giving it a competitive advantage over its peers. Additionally, the company's favorable loss experience has it on track to achieve a significant portion of its annual premium spend back in the form of a dividend, on top of the double-digit rate reductions they've enjoyed since joining the captive.