Captive Review (CR): Of the captive structures available in Bermuda, which is showing the most growth and why?
Tim Faries (TF): Bermuda captives can be divided into three categories: Class 1 are pure captives, with 100% of the risks underwritten by the captive for the owners of the insurance company and affiliates of the owners; Class 2 allows up to 20% of unrelated business risk to be written; and Class 3 allows as much as 50% of third-party business risk to be taken on.
