Eastern Alliance Insurance Group Review – History of Captives

Eastern, Inova, and alternative insurance. A history of security and stability.

The concept of alternative insurance, commonly known as “captives,” has been around as long as insurance itself.1 The idea dates back to the 1600s when ship owners sat down at Lloyd’s Coffee House in London to discuss common sense solutions to protecting their vessels and cargo from financial loss. The rest is “Lloyd’s of London” history.

The modern day “captive” was born in 1958 by insurance innovator Fred Reiss, when he formed a “self-insurance” company to insulate his first client from the insecurities and instabilities of traditional insurance. As a wholly owned subsidiary located in Bermuda, this insurance company was literally a “captive” of the parent.

In recent decades, captives’ inherent security and stability have garnered widespread global acceptance and popularity. More than 90% of Fortune 500 companies have one or more captives. The ever-evolving sophistication of captives makes them attractive solutions for organizations of all types and sizes in search of an alternative to traditional insurance.

Eastern and Inova. True leadership in alternative insurance.

Inova’s leadership in alternative insurance began in March 1998 when Cayman-based Eastern Re Ltd. became the first Segregated Portfolio Company (SPC) authorized by the Cayman Island Monetary Authority (CIMA). An SPC is a single legal entity comprised of individual “protected cells” that protect each insured organization’s assets and liabilities within a secure, stable environment.

Inova’s Eastern Re was the first SPC to be assigned a financial strength rating by A.M. Best Company. On August 13, 2014, A.M. Best Company reaffirmed Eastern Re’s A (Excellent) financial strength rating.

Inova’s strength is reinforced by Eastern’s solid partnerships with globally respected industry leaders, including Lloyd’s of London (insurer/reinsurer), Global Captive Management Ltd. (insurance manager), Ernst & Young LLP (actuary/auditor), and Deustche Bank (SPC investment manager).

As of December 31, 2014, Inova includes 20 active programs totaling in excess of $60M in direct written premium.

1 Shanique Hall, “Recent Developments in the Captive Insurance Industry,” Center for Insurance Policy Research (CIPR) Newsletter [January 2012], accessed February 7, 2014.


Eastern Alliance Insurance Group – Products and Services


We offer a full range of workers’ compensation products and services – including third-party administrator services and alternative risk financing options. All of our product offerings are tailored to meet our clients’ specific needs. Contact an EAIG agent and learn how we can develop a solution that’s right for your organization.

Alternative Markets

We look past the typical to provide fresh perspectives.

Eastern recognizes there are times when traditional workers’ compensation programs may not provide the best solution for our clients. That’s why we offer an alternative markets program – with non-traditional insurance products and risk financing services for those who want to share in underwriting profits and investment income.

We focus on doing one thing and doing that one thing well: providing superior workers’ compensation products and services to businesses and organizations. Since 1997, we have built a strong reputation for being a “best in class” provider of workers’ compensation products and services. We’ve achieved this position by creating supportive relationships and providing our employees and clients with the tools and resources they need to win with integrity.