Robertson Services

Oil Production and Oil Supply Risk Management through Captive Insurance Co. formation. For private companies earning in excess of $2MM net per year.

A Captive Insurance Company is a new separate entity established to formalize risk a company already has: deductibles, exclusions, uninsurable risk, hedging(?), etc. Under special tax rules for small insurance companies, a company can establish their own insurance company, if managed professionally, and pay up to $1.2MM per year in deductible premium from the parent company into the subsidiary - yet it is not taxable income to the subsidiary - considered "income in respect of risk". Wealth preservation advantage: the owners of the new "Captive" can be key employees, family members (spouse and/or children), a Trust, current company owners, etc. After risk has expired, the earnings can be distributed as capital gain to the owner(s). www.RobertsonIS.com 800.707.1070 Toll-free