- Captives recorded policyholder dividends of 3.4% in 2009, down 1.2 percentage points from 2008, as companies rebuilt surplus that was destroyed during the crisis.
- Net investment income was $1.6 billion in 2009, compared with $1.9 billion in 2008.
- Amid continued softening market conditions, many captives have told A.M. Best they continue to hold the line and will let business go if premium rates are too low.
- Captive formations go on even as the commercial insurance market continues to soften, and in the midst of an economic crisis, new captive domiciles are finding it difficult to establish their presence in the market.
- The outlook for the captive industry remains stable.
- Many well run risk retention groups (RRG) continue to thrive despite the soft market, changing market profiles and economic turmoil; within A.M. Best’s universe of 32 letter-rated RRGs, admitted assets and policyholders’ surplus at December 31, 2009 were up 6.9% and 19.5%, respectively, from December 31, 2008.