PERC

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PERC - Private Enterprise Risk Captive is the acronym used by USA Risk Group to define a captive insurance company who qualifies as a Small P&C Insurer under IRC 831(b) and incorporated as a captive insurer.

There are several essential elements to consider when creating a PERC:

  • Must be created for sound business purposes
  • More effective management of a company’s insurance and financial risks
  • Properly formed and operated by an experienced manager
  • Reasonableness of Premiums
  • Reputation of domicile

In order to qualify for favorable tax treatment a PERC must generate more than 50% of its premium income from outside interests. USA Risk Group brings the solution of reinsurance pools to our PERC clients. USA Risk Group has established relationships with a number of reinsurance pools, one for every PERC nuance.

Setting up and running a captive insurance company is a complicated effort but worth considering for a business with a long-term time horizon and an appetite for risk.

Give us a call – Let a member of our experienced team discuss the details of creating and owning a PERC and developing a personalized Feasibility Study. The purpose of a Feasibility Study is to provide in depth analysis of your organization’s insurance and financial needs and to determine if a captive is right for you.

In the current economic environment – insurance, business and financial risks are interconnected.

USA Risk Group’s innovative approach to PERC’s is the latest in alternative risk solutions. In order to achieve overall financial objectives, P&C risk management must be incorporated into an organization’s overall business plan. Through a PERC, an organization is able to not only more effectively manage P&C risk, but also support an organization’s need for asset protection, estate planning and improved cash flow.

Captive Insurance Companies are an excellent way to mitigate unforeseen loss, gain control of your insurance program and enjoy beneficial tax treatment. PERC’s qualifying for the IRS tax code 831(b) are taxed only on their net investment income.

Contact Us for More Information

Adam Forstot
USA Risk Group
307 Falls Street, Suite A
Greenville, SC 29601
800.872.7475 x2258
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1334522610_pdf Download PERC Printed Brochure

Objectivies

  • Better Management of the organization’s Property, Casualty, and other business risk.
  • Improved cash flow & return on equity.
  • Facilitate efficient Estate, Succession and Retirement Planning.
  • Provide deferred compensation for key employees. serv ices
  • Formation Consulting
  • Actuarial Analysis
  • Audit
  • Estate and Tax Consultation
  • Specialty Brokerage
  • Reinsurance Placements

Services

  • Formation Consulting
  • Actuarial Analysis
  • Audit
  • Estate and Tax Consultation
  • Specialty Brokerage
  • Reinsurance Placements

Opportunities

Corporate Income Tax:
In self-insured situations, there is no tax deduction until a loss is paid, however:

With a PERC:
If qualified under IRC 831(b), premiums as high as $1.2MM /year are tax deductible to you, the insured/owner.

Wealth Transfer and Asset Protection:
Having a captive enables privately held businesses to transfer assets from one generation to another with little or no tax consequences.