Best Captive Insurance Firms in USA
Non-sponsored, Expert Verified and Transparently Ranked Captive Insurance Firms in USA
Published: December 20, 2025 | Verified by: Ted Scheiman & Rob Watts
Executive Summary
We analyzed 4 solutions. Top Recommendation: Insurance and Annuities by Ameriprise Financial, Inc. scored highest due to High 'A' (Excellent) rating affirming strong financial position within a major financial services firm..
Content Verification
Side-by-Side Comparison
| Feature | #1 Insurance and Annuities (Ameriprise Financial, Inc.) | #2 Refining (Phillips 66) | #3 Electric Utility Services (NiSource) | #4 Institutional Reinsurance Solutions (Lincoln Benefit Life Company) |
|---|---|---|---|---|
| Best For | High 'A' (Excellent) rating affirming strong financial position within a major financial services firm. | Tailored for multinational energy operations with consistent excellent ratings. | Specialized in property and workers' comp for energy utilities sector. | Ongoing capital support from parent enhances stability amid legacy business runoff challenges. |
| Regulatory Compliance | Annuities, life, LTC and disability policies are issued by RiverSource Life (NY by RiverSource Life of New York); distributed by Ameriprise Financial Services, LLC (member FINRA/SIPC). (ir.ameriprise.com) Prospectuses provided for variable/structured annuities. (ameriprise.com) CONNECT auto/home is underwritten by American Family Connect/Homesite affiliates under state filings. (ameriprise.com) Ameriprise Captive Insurance Company is Vermont‑domiciled (AM Best A) and regulated by Vermont DFR. (captivereview.com) | Company-wide governance commits Phillips 66 to comply with all applicable laws. (investor.phillips66.com) Refining projects secure required permits/approvals, for example, Rodeo Renewed obtained county land‑use approval, and Santa Maria site remediation will proceed per regulatory authorizations and permits from local agencies. (phillips66.com) | Electric service is regulated: NIPSCO’s rates and service require Indiana Utility Regulatory Commission approval. (nipsco.com) Wholesale/transmission activities comply with FERC Standards of Conduct (publicly posted procedures). (nipsco.com) Operations follow EPA rules and electric reliability standards (NERC 693/CIP) and participate in MISO per regulatory obligations. (nipsco.com) | Reinsurance is transacted via Kuvare Life Re Ltd. (Bermuda). Products/structures may not be available in all jurisdictions; reinsurers may not be licensed in all states; reinsurance is not covered by state guaranty associations. LBL’s captive, Lancaster Re, is Nebraska‑domiciled; LBL reports no RBC or primary security shortfall for these agreements. (kuvare.com) |
| Tailored Risk Coverage | Coverage is tailored via advisor-guided selections: long-term care policies let you choose benefit amount, duration, waiting period, inflation protection and pooled-benefit options; life insurance offers optional riders (e.g., chronic care, waiver of premium, child coverage). Auto/home through CONNECT provides discounts and benefits tailored to client needs (including umbrella). (ameriprise.com) | Through captive Spirit Insurance, Phillips 66 insures U.S. operations with property damage, business interruption, construction all‑risks, excess liability, and employee medical reimbursement; terrorism risk is mitigated via TRIPRA reinsurance. (captiveinternational.com) Radius provides similar coverage for non‑U.S. interests; Spirit generally excludes Texas risks. (captiveinternational.com) | NiSource’s captive (NICI) tailors coverage to its utility exposures: all‑risk property, workers’ compensation, excess general/auto liability, medical stop‑loss, long‑term disability, group life, and punitive damages, written solely for NiSource and affiliates within its ERM. (businesswire.com) Limits reflect retained risk and capital strength. (captiveinternational.com) | Customized reinsurance for institutional/middle‑market carriers aimed at improving risk‑based capital, delivered via Kuvare Life Re alongside Lincoln Benefit Life. Solutions are differentiated and flexible, including forward‑flow and block annuity reinsurance structures tailored to counterparties’ needs. (kuvare.com) (kuvare.com) |
| Financial Strength Rating | AM Best Financial Strength Ratings: - RiverSource Life (Ameriprise’s life/annuity insurer): A+ (Superior), Stable Outlook, Nov 19, 2025. (riversource.com) - Ameriprise Captive Insurance Company (ACIC): A (Excellent), Stable Outlook, Nov 21, 2025. (captiveinternational.com) | AM Best Financial Strength Rating: A (Excellent) for Spirit Insurance Company (Phillips 66 captive); outlook stable. Affirmed December 12, 2025. (businesswire.com) | AM Best Financial Strength Rating: A (Excellent); Outlook: Stable. Affirmed March 28, 2024 for NiSource Insurance Corporation, Inc. (NiSource’s captive insurer). (businesswire.com) | AM Best Financial Strength Rating: B++ (Good) for Lincoln Benefit Life Company; Outlook: Stable (affirmed Dec 17, 2025). For associated reinsurer Kuvare Life Re Ltd.: A- (Excellent); Outlook: Stable (affirmed Dec 17, 2025). (businesswire.com) |
Insurance and Annuities
Ameriprise Financial, Inc.Company Information
Description
Ameriprise Financial is a longstanding leader in financial planning and advice, providing clients with tailored solutions to help them achieve their financial goals.
What They Do
They offer comprehensive financial planning and advisory services, including investment products, retirement planning, and insurance solutions.
Who They Serve
Individuals and families seeking financial guidance and investment options.
Key Value Propositions
Target Customers
Industries Served
Contact Information
Summary
Ameriprise Captive Insurance Company (ACIC) is a subsidiary captive insuring risks for Ameriprise Financial. It receives an 'A' (Excellent) Financial Strength Rating from AM Best. Focuses on protecting parent company assets.
Key Features
- Annuities for retirement savings and tax deferral
- Auto and home insurance through CONNECT affinity program
- Life insurance for legacy and other financial goals
- Long-term care insurance to offset extended care expenses
- Disability income insurance to protect income during illness or injury
Key Benefits
- Comprehensive asset and risk management
- Access to a wide range of insurance and annuity products
- Products from highly rated and reliable insurance companies
- Personalized recommendations from Ameriprise financial advisors
- Potential for tax deferral with annuities
- Protection for income, assets, and independence
Who Is It For
- Individuals seeking to protect their assets and manage risk
- Clients planning for retirement
- Families planning for legacy and financial security
- People seeking to offset out-of-pocket expenses for long-term care
- Individuals wanting to insure their income against disability
- Clients needing auto and home insurance
Insurance & annuities
Reaching your financial goals involves protecting your assets as well as managing them. At Ameriprise Financial, we recommend a balanced and customized approach to asset and risk management. Ameriprise Financial offers a full range of high-quality insurance and annuity products through third-party insurance carriers, an affinity program and our affiliates, RiverSource Life Insurance Company (RiverSource Life), RiverSource Life Insurance Co. of New York (RiverSource Life of New York). Together, both RiverSource Life and RiverSource Life of New York are ranked as the 21st largest life insurance company of about 780 life insurance companies, based on total assets. In addition, RiverSource Life and RiverSource Life of New York consistently earned positive ratings from independent rating agencies — a fact that can give you the added confidence of working with a strong, reliable company.
Annuities
An annuity can be a valuable tool for investing and saving for retirement. Plus, annuities generally provide tax deferral, which gives you the freedom to control when you pay taxes on your earnings.
Auto and home insurance
Available through CONNECT, powered by American Family Insurance as part of an affinity program, CONNECT has a team of agents dedicated to providing clients with the kind of personal service they deserve.
Life insurance
A life insurance policy can help you plan for your family’s legacy needs and may also offer features that can help you meet other goals.
Long-term care insurance
Long-term care insurance provides benefits to offset out of pocket expenses in the event of an extended care need. A secure financial future typically includes protecting your retirement income, assets and your independence in the event of an extended care need.
Disability income insurance
Protect yourself, your family and your lifestyle by insuring your income in the event of long-term illness or injury. Disability income insurance provides the resources you need when you are unable to work.
Your resource for insurance and annuity solutions
An Ameriprise financial advisor can help you identify areas where you may benefit from coverage and recommend products that fit your needs. Whatever life sends your way, you'll feel better knowing you are protecting yourself and your loved ones financially.
Resources
Supporting Resources
Detailed Comparison
Regulatory Compliance
Tailored Risk Coverage
Financial Strength Rating
Phillips 66Company Information
Description
With nearly 150 years of experience, our teams across our unique value chain focus on safely delivering reliable energy now and for the future. Guided by our core values of safety, honor and commitment, we work to meet the world’s energy needs today and tomorrow.
What They Do
Phillips 66 operates in the energy sector, focusing on refining, midstream, chemicals, and renewables.
Who They Serve
Phillips 66 serves a range of clients in the energy industry including commercial, aviation, and renewable energy sectors.
Key Value Propositions
Target Customers
Industries Served
Contact Information
Key Pages
Navigation Links
Summary
Spirit Insurance Company is a captive insurer for Phillips 66, providing coverage for energy sector risks. AM Best affirms its A (Excellent) financial strength rating. Operates as part of the company's risk management strategy.
Key Features
- Reliability-centered operational culture
- Continuous improvement in design, operation, and maintenance
- Network of high-performing refineries
- Focus on margin enhancement and advantaged feedstocks
Key Benefits
- Industry-leading safety and reliability standards
- Consistent recognition for safety innovation and leadership
- Improved yields of higher-value products
- Efficient and seamless transportation of energy products
- Commitment to safeguarding people, assets, and communities
Who Is It For
- Energy and fuel distributors
- Industrial and commercial energy consumers
- Aviation and transportation sectors
- Communities and stakeholders seeking safe, reliable energy supply
Refining
Our Refining assets set the standard for safe, reliable, and high-performing operations. At Phillips 66, our Refining business is built on a foundation of operating excellence, margin enhancement and an unwavering commitment to safety and reliability. We strengthen returns by improving yields of higher-value products and increasing the throughput of advantaged feedstocks—while safeguarding people, assets and communities.
- Reliable operations are safe operations.
- Everyone owns reliability.
- We foster a reliability-centered culture: design it right, operate it right, maintain it right and continuously improve.
- Enhances performance and ensures seamless and efficient transportation of energy products.
- Refineries consistently rank among the safest in the industry.
- Earned top honors from AFPM for program innovation and leadership.
- Excellence in safety is the license to operate.
Learn More About Our Refineries
Links to individual refinery pages and related news stories.
- Bayway Refinery
- Billings Refinery
- Borger Refinery
- Ferndale Refinery
- Humber Refinery
- Lake Charles Manufacturing Complex
- Los Angeles Refinery
- MiRO Refinery
- Ponca City Refinery
- Santa Maria Refinery
- Sweeny Refinery
- Wood River Refinery
Resources
Supporting Resources
Detailed Comparison
Regulatory Compliance
Tailored Risk Coverage
Financial Strength Rating
NiSourceCompany Information
Description
NiSource is a natural gas and electric company serving nearly four million customers across six states. They are committed to sustainability and providing reliable energy to their customers while investing in communities and supporting a greener energy future.
What They Do
NiSource provides natural gas and electricity services to residential, commercial, and industrial consumers.
Who They Serve
They serve nearly four million customers across six states including Columbia Gas and NIPSCO brands.
Key Value Propositions
Target Customers
Industries Served
Contact Information
Key Pages
Summary
NiSource Insurance Corporation, Inc. is a Utah-domiciled captive offering all-risk property and workers' compensation coverage. Ratings have been affirmed by AM Best. Protects utility parent company's operations.
Key Features
- Electric distribution services
- Customer support and safety programs
- Energy assistance and efficiency programs
- Service territory maps and resources
Key Benefits
- Reliable delivery of essential electric energy
- Fully regulated utility service
- Service coverage across multiple states
- Support for both homes and businesses
Who Is It For
- Residential customers
- Commercial customers
- Industrial customers
- Families and businesses in Indiana (NIPSCO service area)
Where We Serve
Each day, across six states, our team of approximately 7,700 employees works hard to ensure nearly four million customers – families and businesses – have the essential energy they need. We're one of the largest fully regulated utility companies in the United States. We heat and light homes, and provide the hidden ingredient in much of what's produced in our service territories across Indiana, Kentucky, Maryland, Ohio, Pennsylvania and Virginia.
- Nearly four million customers served
- Service across Indiana, Kentucky, Maryland, Ohio, Pennsylvania, and Virginia
- Fully regulated utility company
Northern Indiana Public Service Co. (NIPSCO)
Headquartered in Merrillville, Indiana, NIPSCO is Indiana’s largest natural gas distribution company and the second largest electric distribution company, serving approximately 1.4 million natural gas and electric customers across 32 counties.
- Second largest electric distribution company in Indiana
- Serves approximately 1.4 million natural gas and electric customers
- Covers 32 counties in Indiana
Resources
Supporting Resources
Detailed Comparison
Regulatory Compliance
Tailored Risk Coverage
Financial Strength Rating
Institutional Reinsurance Solutions
Lincoln Benefit Life CompanyCompany Information
Description
Kuvare is on a mission to serve hardworking consumers overwhelmed by the complexities of retirement, providing a unified financial hub that protects the retirement of everyday Americans and the distributors, carriers, and investors that serve them. They create life insurance and annuity products that are simplified for distributor partners and financial professionals to sell and service.
What They Do
Kuvare provides life insurance and annuity products and reinsurance solutions, focusing on retirement financial security.
Who They Serve
Kuvare serves everyday Americans, financial institutions, independent agents, and insurance carriers.
Key Value Propositions
Target Customers
Industries Served
Contact Information
Social Media
Key Pages
Navigation Links
Summary
Lancaster Re Captive Insurance Company is a captive reinsurer providing reinsurance support to Lincoln Benefit Life Company, headquartered in Rosemont, IL. It handles risks from its parent company's insurance operations. AM Best rates it with supportive financial strength.
Key Features
- Reinsurance contracts tailored to institutional needs
- Bespoke insurance solutions
- Support for sustainable growth
Key Benefits
- Strategic support and resources for sustainable growth opportunities
- Access to bespoke reinsurance structures
- Risk transfer and capital management solutions
Who Is It For
- Institutional clients
- Distributors
- Carriers
- Investors
Institutional Insurance Markets
Lincoln Benefit Life Company participates in institutional insurance markets, offering reinsurance solutions as part of Kuvare’s coordinated financial services strategy.
- Reinsurance contracts entered into with Kuvare Life Re Ltd., Hamilton, Bermuda
- Not all reinsurance products or structures offered are available in all jurisdictions
- Reinsurers may not be licensed in all states
- All transactions are subject to meeting a reinsurer’s underwriting requirements
- Reinsurance products are not protected or guaranteed by state insurance guaranty associations or insolvency funds
Resources
Detailed Comparison
Regulatory Compliance
Tailored Risk Coverage
Financial Strength Rating
Our Ranking Methodology
How we rank these offerings
We ranked these Captive Insurance Firms in USA based on three key factors: Financial Strength Rating (40% weight), Tailored Risk Coverage (35% weight), and Regulatory Compliance (25% weight). Insurance and Annuities scored highest because they received an A (Excellent) rating from AM Best, offer highly customizable coverage options, and demonstrate strong regulatory compliance. This balance of strong financial ratings and tailored offerings makes them the top choice in this sector.
Ranking Criteria Weights:
Frequently Asked Questions
- What are the typical costs and pricing models for captive insurance firms in the USA?
- Captive insurance firms, such as Lancaster Re and Ameriprise Captive Insurance Company, generally involve high initial setup costs due to regulatory compliance and operational structuring. Ongoing expenses include administrative costs, reinsurance premiums, and claims handling. Pricing models are commonly risk-adjusted and based on the coverage type, with energy sector captives like Spirit Insurance Company potentially facing high risk-related premiums due to volatile market conditions. These models are tailored to the parent company's risk profile and specific industry challenges.
- What are key selection criteria and considerations for establishing a captive insurance firm?
- Selecting a domicile with favorable regulatory conditions is crucial, as exemplified by NiSource Insurance Corporation's domicile in Utah, which offers favorable regulation for utility services. Financial strength ratings, such as AM Best's 'A' (Excellent) ratings, are key indicators of a captive's solidity and reliability, essential for reinsurance relationships as seen in Lancaster Re. Consideration of the parent company's risk management needs, including industry-specific risks, influences the structuring and operational focus of the captive.
- What industry standards and compliance requirements must captive insurance firms adhere to in the USA?
- Captive insurers in the USA, like NiSource Insurance Corporation and Spirit Insurance Company, must comply with both state-specific insurance regulations and federal risk retention guidelines. The domicile choice, such as Utah for NiSource and Illinois for Lancaster Re, often dictates the regulatory framework that the captive must follow. Maintaining a strong financial strength rating, as confirmed by AM Best, helps captives remain compliant with industry standards and regulatory expectations, ensuring operational legitimacy and trustworthiness.
- What are the common implementation challenges faced by captive insurance firms, and how can these be addressed?
- Challenges in implementing captive insurance solutions include regulatory complexities, risk assessment accuracy, and aligning with the parent company's risk appetite. Addressing these challenges involves leveraging industry expertise to navigate regulatory landscapes as shown by Lancaster Re and Spirit Insurance Company. Adopting robust risk management frameworks and securing high financial ratings from agencies like AM Best, similar to Ameriprise Captive, can enhance operational effectiveness and strategic alignment.
- How do captive insurance firms provide ROI and deliver value to their parent companies?
- Captive insurance firms like Spirit Insurance Company and Ameriprise Captive Insurance ensure tailored risk management solutions that align closely with parent company objectives, helping to manage and mitigate exposure effectively. They enhance ROI through reduced premiums compared to traditional insurance, potential tax advantages, and profit retention within the corporate structure. The financial strength, demonstrated by AM Best ratings, assures the parent company of reliable coverage, enabling efficient capital allocation to core business activities.
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