FM Adds Captive Cell Solutions to Risk Range
The insurer is expanding its risk transfer options by allowing clients to lease protected cells within its existing captives.
Updated on Oct. 20, 2026 in Insurance
Live Poll
Do you trust alternative risk transfer solutions to provide reliable financial protection for your business?
FM has added captive cell solutions to its alternative risk transfer range, allowing clients to leverage its existing infrastructure. The insurer offers these services through its wholly owned entities in Vermont and Bermuda.
Why it matters
These solutions help organizations manage insurance costs, market capacity constraints, and unexpected financial losses. By using existing captives, clients reduce the cost and administrative burden associated with building standalone structures.
FM serves 1 in 4 Fortune 500 companies, utilizing its Watch Hill Insurance Company in Vermont and New Providence Mutual in Bermuda. The company can establish a new captive cell for clients within a few weeks.
The players
FM
FM is a global insurer that provides commercial property insurance and risk management services to one in four Fortune 500 companies.
Watch Hill Insurance Company
Watch Hill Insurance Company is a sponsored captive entity based in Vermont that is wholly owned by FM.
New Providence Mutual
New Providence Mutual is a captive insurance entity located in Bermuda and owned by FM.
The details
Clients can lease a protected cell and utilize the working capital, surplus, and licenses of the FM-owned captives. FM manages administrative, claims, engineering, reinsurance placement, and admitted fronting services while maintaining no risk pooling between cells.
Timeline
October 20, 2026: FM adds captive cells to its risk transfer range.
Within a few weeks: The typical duration required for FM to establish a cell for a client.
Market Dynamics
This move reflects the broader industry trend of corporate clients shifting toward alternative risk transfer models to gain flexibility. These structures position FM to compete against firms offering more complex, standalone captive management services.
Corporate clients now have a faster, lower-cost route to establishing captive risk management programs. These solutions allow firms to stabilize insurance costs and mitigate exposure to market volatility without the heavy administrative overhead of traditional captive creation.
The takeaway
Captive cells provide a practical middle ground for companies needing risk management coverage without the high barrier to entry of a full captive. Organizations should assess whether their current risk profiles align with the capital requirements of these leased solutions.
Further reading
Learn more about the evolving landscape of Insurance and risk mitigation.
Live Poll
Do you trust alternative risk transfer solutions to provide reliable financial protection for your business?
