Captives and Captive Cells

A Willingness to Share the Risk

Do you take a long-term view of property loss prevention? Are you willing to share some risk?  Owning a captive can be a rewarding alternative to risk financing. A big plus: any surplus in the captive can be reinvested. The caveat: resource and administrative costs can be cost-prohibitive.


Not ready for a full commitment to captive ownership? Consider a captive cell. For many, it's an affordable way to enjoy the benefits of a captive without the upfront costs, capital investment or significant maintenance costs associated with forming and managing an owned captive.


FM Global offers captive cell solutions through its wholly owned captives in Vermont and Bermuda.

Is a Captive Cell Right for You?

If you’re looking for all the benefits of a captive but aren’t ready to invest in an owned captive, a captive cell solution can be a fast and easy alternative. Here’s how it works: Your company “leases” a protected captive cell. The financial arrangement includes working capital, surplus and licenses from a captive owned by FM Global. We also arrange the necessary administrative, claims, engineering, reinsurance placement and admitted fronting services. Under the protected cell structure, there is no pooling of risk between cells.

Captive Cell

Captive Cell

Learn how an FM Global captive cell can be leveraged to manage a client's insurance program volatility, self-insure unusual risks and bridge coverage gaps.

For most clients, FM Global is able to establish a captive cell within just a few weeks. It’s easy to set up and control, regardless of size. Administered by an expert third party, it provides similar benefits to an owned captive, only without the complexity, upfront investment, capital requirement and maintenance requirements.


Get alternatives to the traditional risk-transfer market through our two wholly owned captives, Watch Hill Insurance Company and New Providence Mutual Ltd. Both offer captive cells that give you the benefits of a captive insurance company without the upfront costs, capital investment and significant maintenance costs associated with forming an owned captive.

Watch Hill Insurance Company

Watch Hill is a sponsored, protected captive cell, controlled corporation that serves as FM Global’s onshore captive option in North America. The company was established in the state of Vermont, the largest domicile for captive insurance companies in the United States, to meet the needs of clients who want to keep their financial interest onshore.

New Providence Mutual Ltd.

A protected captive cell, controlled corporation based in Bermuda. It provides clients with a stable offshore political environment, along with an established insurance, reinsurance and banking infrastructure.