Captive Insurance Manager Capstone Announces $400 Million In Dividends

Expiration of Bush Tax Cuts Expedite Dividend Distributions

HOUSTON, Nov. 9, 2012 /PRNewswire-USNewswire/ -- Capstone Associated Services, Ltd. today announced crossing the $400,000,000 milestone in approved dividends for its administered captive insurers.  Capstone forms property & casualty insurance companies that protect clients' businesses by creating a pre-tax reserve against future losses, while at the same time creating the potential for a significant profit.  Capstone is the largest U.S. third party administrator of property & casualty insurers for closely-held mid-market companies. 

"The so-called 'Bush tax cuts' passed by Congress in 2001 and 2003 expire at the end of this year. Without further action by Congress, federal income tax rates increase on January 1, 2013. As a result, many of our clients have directed Capstone to apply for dividends out of excess regulatory assets while the qualifying dividend rates are at an attractive 15%," explains Stewart Feldman, CEO and General Counsel for Capstone.  "And the dividends are free of Medicare taxes which begin in January on investment income."

"Capstone has been actively working with the captive owners and insurance regulators for approval of dividends being declared out of excess admissible assets," reports Megan Brooks, Capstone's Director of Finance.  "This year alone, our clients will realize nearly $100 million in dividends.   We have many happy clients that have enjoyed the significant benefits of captive ownership over more than a dozen years."   

Capstone reports continued growth among middle market clientele.  "Our continued growth is a reflection of the broadening acceptance of alternative risk planning beyond the larger, publicly held companies where captive planning is commonplace," says Clete Thompson, Vice President of Business Development for Capstone. Since 1998, Capstone has formed over 120 captive insurers for middle market companies, with insureds located throughout the United States. 

"In today's challenging business environment, a captive insurance company offers middle market businesses multiple benefits," says S. Lance McNeel, Capstone Vice President of Insurance Operations.  "Capstone has long been nationally recognized as experts in alternative risk/captive planning, which offers middle market companies advantages, such as stabilizing insurance costs, enhancing control over cash flows and investments, improving risk management and loss control, and providing a tax-efficient mechanism for funding future losses."

About Capstone
Capstone Associated Services, Ltd., www.CapstoneAssociated.com, is the leading U.S. provider of turnkey alternative risk planning services to middle market companies.  Jointly with our affiliated law firm, The Feldman Law Firm LLP, www.feldlaw.com, Capstone administers property & casualty insurance companies which provide alternative risk financing services to their affiliates.

CONTACT: Clete Thompson, Vice President Marketing & Business Development, Capstone Associated Services, Ltd., +1-713-800-0550, [email protected]

SOURCE Capstone Associated Services, Ltd.