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Over the past few months there have been a number of emerging developments which will have implications for the industry. Essentially, these developments are causing those responsible for the operation of captives to consider closing them. This article will focus on the potential reasons for closures, what risk managers and captive owners need to think about and the different options available when a decision to close a captive is taken.
Why is there an increasing number of captives closing?
There can be many reasons why a captive owner may elect to close. The first is the impact of Solvency II and the resulting increase in operational costs. Many captives have not reached a size that would enable them to operate at a profitable level under the new...
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