What Do Bank Failures Have to Do with Your Captive?
Two burning questions every captive insurance company needs answered RIGHT NOW
The Federal Reserve’s rapid increase in interest rates has brought risk to the surface. Amidst the current environment, bank failures are top of mind as is the solvency of many other institutions. Banks and insurance companies have a lot in common, particularly in the way they manage their cash and investments. So, as a captive insurance company owner or manager, it’s important to ask yourself two crucial questions.
- Are my captive’s assets and liabilities appropriately aligned?
- Am I comfortable keeping non-FDIC insured deposits with my bank?
As a best practice, both banks and insurance companies require asset/liability matching based on either a cash flow or duration basis. The recent failure of all three U.S. banks was caused by a mismatch between assets and liabilities. If you can’t positively answer those two questions you may need a risk assessment.
Since 1995, Wellspring Financial has been helping captive insurance companies align their investments using a best practice asset / liability modeling. We can quickly assess your risk and recommend appropriate adjustment, if necessary.
Visit our website at wellspringcaptivesolutions.com and reach out to our captive investment team to discuss your situation further.
Schedule your asset/liability assessment now and learn more about our team at WellspringCaptiveSolutions.com.
