AIG has created Grand Isle SAC to give clients flexibility and ease of entry into the captive market, according to Bob Gagliardi.
The segregated accounts company (SAC) is to be domiciled in Bermuda.
Grand Isle claims to offer many of the benefits of a captive, including features that allow the insured to retain a certain proportion of the risks and better manage the associated costs—without incurring the full operating costs of a standalone captive.
Although the SAC is something that has been a part of Bermudian law for quite a number of years, this is the first time the option has been readily available to clients. AIG themselves have operated through a Vermont sponsored captive for a number of years.
Worldwide director and senior vice president of AIG Insurance Management Services, Bob Gagliardi, commented: “The main thought was that the SAC would be attractive for some of our own clients, particularly those located outside of the US. We wanted to provide them with flexibility and ease of entry into the captive market.”
“While the SAC is open to any prospective US clients as well, our first client has turned out to be a Japanese-based parent company. This is the only client we have at this time but there are several other prospects at the moment. The hope is that we can establish a few more cells before the end of the year.”
