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Rising insurance premiums and ongoing market volatility continue to challenge businesses across Texas, including companies with strong safety records that still face unpredictable year-over-year costs.
This case study highlights how TRB Insurance used a captive insurance strategy to help two established industrial companies insulate themselves from market swings and generate six-figure savings.
Before hurricane season begins, take time to review insurance policies and confirm that coverage is up to date. Small adjustments now can make the difference between financial stability and prolonged recovery.
Two industrial companies in Texas were experiencing significant year-over-year volatility in their commercial insurance premiums. Despite maintaining strong safety records and long-standing insurance relationships, both businesses faced unpredictable costs that complicated budgeting and long-term planning.
Following introductions through their existing banking relationship, TRB Insurance offered a new perspective, specialized knowledge, and a strategic approach focused on reducing cost volatility and improving long-term control. In both cases, TRB Insurance introduced a captive insurance strategy, enabling ownership and direct oversight of their insurance programs, and shielding them from ongoing market fluctuations. This distinctive structure enhanced loss prevention and claims management, created opportunities to earn investment income on premiums paid, and allowed retention of underwriting profits in years with fewer claims.
TRB Insurance successfully secured business with both clients by delivering six-figure annual savings compared to their former insurance plans, realizing annual premium reductions of approximately $200,000 and $150,000 respectively.
Beyond annual savings, both clients now have the ability to generate investment income on premiums paid and to retain annual underwriting profits when loss ratios are more favorable than anticipated. This approach positions each company to return millions of dollars in value over time through reduced volatility, improved loss performance, and retained profits.
Captive insurance strategies may be an appropriate fit for other current TRB clients.
If you are not yet a commercial client with Texas Regional Bank, schedule an appointment with our Business Banking team to get started, and learn how to access the full capability of TRB’s financial services.
Captive structures give qualifying businesses a disciplined way to manage long-term risk and create more predictable financial outcomes. For companies facing premium uncertainty, the ability to regain control can become a meaningful competitive advantage.
As a wholly-owned subsidiary of Texas Regional Bank, TRB Insurance is part of a diverse financial services company and is designed to help business owners evaluate options and choose strategies that support their goals. To explore whether a captive approach could benefit your organization, reach out to a TRB Insurance specialist today.
DISCLOSURES: INVESTMENT AND INSURANCE PRODUCTS ARE NOT A DEPOSIT/NOT FDIC INSURED/MAY LOSE VALUE/NOT BANK GUARANTEED/NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY/ARE NOT A CONDITION TO ANY BANKING SERVICE OR ACTIVITY.
