1. Best Practices of Member Owned Group Captives

2. Captive Resources, LLC George Rusu – Chairman & CEO Michael J. Kilbane – Co-CEO Nick Hentges – President Phoenix Transportation Kevin Warren – Owner & CEO Long time member of a Captive Resources captive Past President of Truck Insurance Ltd. Current Captive Investment Fund Representative

3. Captive Resources LLC Who We Are: 30 years in existence 31 member-owned group captives ─ A number of the largest member-owned alternative risk facilities in the world ─ Developed one of the first member-owned group Benefits Captive $1.5 billion in written premium More than 3,300 member companies Created and Oversee the $2.4 billion Captive Investors Fund (established in 1994) Sister company, Kensington Management Group, the largest independent captive manager in the Cayman Islands

4. Captive Resources LLC Our Mission: Our Mission: To Provide Middle Market Businesses The Opportunity To Control Their Insurance Costs Through The Creation & Oversight Of Member-Owned Group Captive Insurance Companies

5. Ownership and Corporate Governance

6. 100% member-owned and controlled No external ownership or voting rights Equity across the membership One equal vote per member Majority rules Active member involvement Semi-annual offshore Board meetings Committee structure Only Board has decision-making authority

7. Member Commitment

8. Board meeting attendance Cultivate a strong risk management culture Safety/loss prevention & claims management focus Attend captive risk control workshops Financial obligations To fellow captive members Maintain financial strength of your own company Help to grow the captive Member referrals

9. Member Recruitment & Selection

10. Referrals from current members Agent/broker education workshops Prospective member educational seminars Collaborative selection process Prospective new member Captive Resources Agent/Broker Policy-issuing carrier Loss Control provider TPA Independent CPA Actuary Current members

11. Member Recruitment & Selection Prospective member must meet the captive’s requirements Premium size Risk profile “Cultural” fit Comfortable sharing risk Committed to safety/risk management

12. Member Education

13. Education is key to member satisfaction and the captive’s success Begins early New member orientation Mentoring programs Comprehensive Mission Structure/Operating Flow Finances Member Responsibilities Marketplace Dynamics

14. Member Education Education is key to member satisfaction and the captive’s success Ongoing Educational Seminars ˗Risk Control ˗Financial

15. Investment Philosophy and Disciplines

16. Preservation of Capital Effective and comprehensive asset allocation policy Broad diversification and high quality assets Appropriate liquidity policies The importance of collateral Advantages of scale Off Shore vs. On Shore

17. Loss Prevention, Safety, Risk Management

18. Foundation/differentiator of CRI captives Significant investment/focus Customized risk control process By captive By member

19. Loss Prevention, Safety, Risk Management Extensive support provided RCA: in depth rating tool Safety Action Plan Semi-annual safety/risk control workshops Monthly webinars Captive member portal Allocated loss prevention fund for each member National Safety Council partnership

20. Conclusion Early and ongoing education is key. It is imperative that the members of the captive are well informed and feel confident in the decisions they are making.

21. Conclusion Understanding and Knowledge of the captive helps build “buy in” and long term commitment.

22. Questions?