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Family Offices and HNWI 2019-01-16T12:47:41+00:00

Family Offices and HNWI

Puerto Rico-based Private Insurance Company

High Net Worth (HNW) business owners can pay premiums based on their actual experience – not the commercial market’s experience.

High net worth individuals look to trusted Registered Investment Advisors (RIAs) for innovative financial strategies that manage risk, protect assets, maximize returns and minimize taxes. Private Insurance Companies can deliver on all critical fronts, which is why RIAs are recommending this proven approach.

With a Private Insurance Company, high net worth individuals can:

  • Identify and finance self-insured risks
  • Protect assets
  • Leverage tax planning
  • Develop exit strategies
  • Build equity while managing risk

Owning a Private Insurance Company can offer high net worth individuals a cost-effective way to limit their financial exposure and build financial reserves for the future. The captive owner decides which coverages and limits are acceptable and, with the help of professional actuaries, can set realistic premiums based on actual claims history. This allows the business owner to avoid the commercial market’s high expenses and one size fits all approach.

Not all solutions are equal

However, not all insurance captives can achieve these desired results efficiently. For example, 831(b) insurance captives established in the United States can be expensive, tedious and time consuming – and it can take two to four months before they are operational. Additionally, they now require onerous annual tax filings, have to operate under significant ownership and estate planning limitations and face a premium cap of $2.2 million.

In response, Captive Alternatives established the Private Insurance Company™. Our Puerto Rico domiciled Private Insurance Company provides a modern, efficient alternative to the 831(b) captive.

Structure and Domicile – the key difference

What sets the CapAlt Private Insurance Company apart is the way it is structured and the Puerto Rico domicile. Puerto Rico is arguably the single best destination for U.S. based corporations. It falls under U.S. federal law and NAIC (National Insurance Commissioners Association) oversight but, crucially, maintains its own Puerto Rico tax laws. A Private Insurance Company can be created in Puerto Rico in as little as two to four weeks – at a lower overall cost and with no premium or ownership limitations.

Private Insurance Companies are an excellent conversation starter for RIAs focused on HNW business owners and families because they address so many core requirements: risk management, asset protection, tax planning and exit strategies.

For more information about how owning a Puerto Rico-based Private Insurance Company can help high net worth clients achieve their financial goals, RIAs can call 404-823-6200.

Owning a Private Insurance Company
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