McGriff has announced the formation of a new group captive practice, McGriff Captive Solutions. The company has named 40-year industry veteran Steve Aldrich to lead the new captive practice. Aldrich also serves as McGriff’s industry practice group leader.
“The new practice will serve as an advisory resource for companies seeking a more cost-efficient way to finance risk while offering members ownership of their underwriting profit otherwise retained by an insurance company,” McGriff said. “Economic outcomes are tied to a company’s own performance along with the group’s collective experience.”
In his new role, Aldrich – who joined McGriff in 2001 – will manage global captive program formation for the middle market, ensure that programs are in compliance and following best practices, and collaborate with clients and broker partners to develop new captive products.
The creation of McGriff Captive Solutions is the latest step in the alternative risk-transfer strategy of McGriff and parent company Truist Bank. MBT, a Bermuda-based single-parent captive and reinsurance company founded in 2001, is owned by Truist Financial Corporation and managed by McGriff.
“Captives are a critical risk mitigation strategy for our clients,” said Rick Ulmer, CEO of McGriff. “Steve was instrumental in the original formation of the Truist captive and is the right person to develop a strong captive strategy for our firm. He understands the business and is uniquely positioned with our McGriff industry practices and Truist Bank verticals to help drive the strategy, structure, and engagement between our various stakeholders.”
“Given the hard market we’re now experiencing, clients with strong balance sheets are looking for options to control their own destiny rather than exposing their business to the up-and-down cycles of the insurance industry,” Aldrich said. “I’m excited about building on our success and solid reputation in the captive and alternative risk transfer space with a new entity designed to position us very well for the future.”
