Control over risk financing
Captives can give businesses greater control over their insurance programs, risk financing, and claims management. However, operating a captive also comes with financial reporting, regulatory, and audit responsibilities.
Expert Audit Services for Captive Insurance Companies
Captive insurance companies require specialized audit expertise. Unlike traditional insurers, captives are established by businesses, groups, or associations to manage and finance their own risks, so audits need a clear view of insurance accounting, reserves, premiums, claims, and reporting requirements.
Intellgus helps captive owners, managers, and related organizations review financial information, reconcile insurance-related balances, and support reliable annual financial statements for reporting requirements.
A captive insurance company is an insurance company established and controlled by a parent organization, group of companies, or association primarily to insure the risks of its owners or affiliated businesses.
Captives can give businesses greater control over their insurance programs, risk financing, and claims management. However, operating a captive also comes with financial reporting, regulatory, and audit responsibilities.
Because captive insurance accounting can be complex, working with an experienced audit firm can help organizations maintain accurate records and address reporting requirements efficiently.
At Intellgus, we provide comprehensive audit support for captive insurance companies, including:
We provide comprehensive audit support for captive insurance companies, from annual financial statement procedures through premiums, claims, reserves, and related-party review.
Procedures depend on the captive's structure, domicile, and applicable reporting framework.
We perform annual audit procedures designed to provide assurance over the captive's financial statements and underlying accounting records.
Our team reviews financial information and supporting documentation to help ensure that the captive's financial statements are properly prepared and supported.
We review premium-related transactions, policy records, intercompany activity, and supporting documentation to help ensure premiums are accurately recorded.
Captive insurance companies must carefully account for claims, expected losses, insurance-related liabilities, and significant assets.
Where applicable, we review reinsurance transactions, balances, and supporting documentation to help ensure proper accounting and presentation.
Captives frequently have transactions with their parent companies and affiliated entities. We review these transactions and related balances for appropriate accounting and financial statement presentation.
Captive insurance audits are different from standard business audits because they involve insurance-specific financial information and transactions. An audit firm with experience in these areas can help identify discrepancies, improve financial reporting processes, and provide management with greater confidence in the accuracy of the captive's financial information.
A captive may need to account for the insurance-specific items below.
A captive may need to account for insurance-specific financial information and transactions, including the items below.
Intellgus can support audit requirements for a variety of captive insurance structures. The specific accounting and regulatory requirements can vary depending on the captive's structure, domicile, and applicable reporting framework.
We follow a structured audit approach designed to make the process efficient and transparent.
We begin by understanding the captive's ownership, insurance activities, policies, related entities, and financial reporting environment.
Our team reviews the general ledger, trial balance, supporting schedules, bank accounts, investments, premiums, claims, and other significant accounts.
We evaluate key insurance-related transactions, including premiums, claims, reserves, and reinsurance activity.
We perform audit procedures over selected transactions and balances to evaluate whether the reported financial information is properly supported.
We review the financial statements and related disclosures for appropriate presentation and consistency with the applicable reporting framework.
We follow a structured audit approach designed to make the process efficient and transparent.
We begin by understanding the captive's ownership, insurance activities, policies, related entities, and financial reporting environment.
Our team reviews the general ledger, trial balance, supporting schedules, bank accounts, investments, premiums, claims, and other significant accounts.
We evaluate key insurance-related transactions, including premiums, claims, reserves, and reinsurance activity.
We perform audit procedures over selected transactions and balances to evaluate whether the reported financial information is properly supported.
We review the financial statements and related disclosures for appropriate presentation and consistency with the applicable reporting framework.
Our captive insurance audit services can support:
We understand that captive insurance financial statements require attention to insurance-specific accounts, transactions, and disclosures.
Our audit procedures are designed to help identify accounting discrepancies and improve the reliability of financial information.
Our team works with complex financial information and understands the importance of detailed documentation and reconciliation.
We use a structured approach to organize information requests, testing, review, and communication throughout the engagement.
We work with captive owners, management teams, and other professionals involved in maintaining the captive's financial reporting.
We explain audit findings clearly and work collaboratively with management throughout the engagement.
Managing a captive insurance company requires more than maintaining a general ledger. Accurate insurance accounting, detailed documentation, proper reconciliations, and reliable financial reporting are essential to maintaining a well-managed captive. Intellgus provides specialized captive insurance audit services to help organizations navigate these requirements with confidence. From annual financial statement audits to detailed reviews of premiums, claims, reserves, investments, and related-party transactions, our team helps make the audit process more organized, efficient, and transparent. Partner with Intellgus for dependable captive insurance audit support tailored to your organization's structure and reporting needs.
A captive insurance audit is an independent examination of a captive insurance company's financial statements and supporting accounting records. The audit evaluates whether the financial information is appropriately presented under the applicable reporting framework.
Many captive insurance companies are subject to annual financial reporting and audit requirements based on their domicile, license, organizational structure, and applicable regulations. Specific requirements should be confirmed with the captive's regulator or professional advisors.
A captive audit may include procedures over premiums, claims, loss reserves, investments, cash, reinsurance, related-party transactions, liabilities, and other significant financial statement accounts.
Yes. Intellgus can work with captive managers, owners, and other professionals involved in maintaining the captive's financial records and reporting process.
Captive insurance companies have unique accounting and reporting considerations. Experience with insurance-related transactions can help an audit team understand the underlying financial information and perform an efficient audit.
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