USA Swimming, the U.S. national governing body for the sport, has received approval from District of Columbia regulators to sell its captive insurer—United States Sports Insurance Company (USSIC).

        The organization reached a run-off disposal agreement with acquisition specialist R&Q—the first Washington, D.C. transaction R&Q has taken on.

        United States Sports Insurance Company (USSIC) was incorporated in 1988 in the offshore center of Barbados and ceased operations in 2014, entering run-off and redomiciliation proceedings. Over the years, the captive's profits were used to establish a risk management fund and strengthen safety measures.

       George Ward, director of risk management at USA Swimming, said: "We originally set up the captive because, at a low point in the insurance market, it was difficult to obtain coverage for pool injuries and competitions in the commercial insurance market. Establishing a captive met our need for that protection. But since 2013, we have been able to obtain better rates directly from the commercial insurance market.

       "Selling the captive is a good way to resolve the legacy liabilities from 1988 to 2003. We got a very good price from R&Q and plan to put the money into the risk management fund. If the commercial insurance market enters another downturn, we would consider using it to form a new captive again."

Source: Captive Review