According to a report by AM Best, the captive insurance company of SAIC (Science Applications International Corporation) is projected to experience underwriting losses during its start-up phase. The captive, which provides coverage for the company's risks, is expected to achieve profitability within five years, as per the rating agency's analysis.
AM Best's assessment highlights the typical challenges faced by new captives, including initial underwriting losses due to premium development and claims experience. The captive's strategy focuses on disciplined underwriting and risk management to reach profitability targets.
SAIC, a Fortune 500 technology integrator, established the captive to manage its insurance costs and risks more effectively. The captive's performance will be closely monitored by stakeholders as it navigates the early stages of operations.
