Q12016 Bank Captive Program Update – January 2016

$2.2 Million - New Legislative Changes to 831 b Captives

The 2015 Appropriation bill included an amendment to increase the 831b captive premium limit to $2.2 million for the tax years after 2016. Crowe will be covering this topic in their next tax update and we will provide upon completion.

19 State Banking Association Endorsements

Our Bank Captive Program has now been endorsed by 19 State Banking Associations, the latest being Minnesota, Colorado, Nebraska and Alabama. We have several more endorsements pending. See the full list here.

40 Banks Now Participating

We now have 40 banks participating from 13 states and 7 Fed Districts. We expect to add 30+ banks to the program in 2016. See what some of our clients have to say about their captive.

February 15 - Engagement Deadline for the New April Pool

We are in the process of forming a new April pool. In order to enter this pool, please engage for the initial insurance/feasibility study by February 15, 2016. Contact us now to talk with a KeyState Risk Manager further about the study.

FHFA Disqualifies Captive Insurance Companies
from FHLB Membership

On January 12th, the FHFA released its final rule on FHLBank membership. In the rule, it disallows captives from FHLBank membership. We want to clarify that this new rule in no way affects KeyState’s Bank Captive Program. The captives in KeyState’s program are not members of the FHLBank system, so this new rule does not affect them in any way. Over 10 years ago, non-banks began forming captive insurance companies to access funding through the FHLBank system. This mechanism was particularly popular with mortgage companies.

Get in Touch

We would love the opportunity to discuss how a captive can work for your bank. Please contact Hillary Frei at [email protected] or Josh Miller at [email protected]. Both can be reached at 702.598.3738.