A feasibility study conducted by Gecalux Group will take
into account several areas, among which are:
- The
structure and objectives of the Group
- The
risks suitable for inclusion
- Appropriate
underwriting & retrocession programmes
- Costs
and benefits comparison of the possible domiciles
- Consolidation
issues
- Influence
of the asset allocation policy
Gecalux
Group will assist in structuring and tailoring the captive
in order to maximize the potential benefits. The result
will be a simulation of the captive business plan over 10
years under various possible scenarios. It will include
the balance-sheet and profit & loss account projections
as well as a free cash-flow analysis and a cost-of-risk
comparison with other alternatives.
Once
the feasibility study has been conducted and its conclusions
approved by the group, the final step before establishing
the captive is the presentation of the official business-plan
to the authorities and the request for their approval. The
completion of the full process generally takes between 6
and 9 months.