Celebrating its 20th anniversary, Webcor's AM-rated captive insurance company, Paramount Insurance, Inc., received the Award of Excellence from the Hawaii Captive Insurance Council (HCIC) at its annual conference on October 24, 2023. Only the seventh captive to receive this prestigious award in HCIC's thirty-year history, Paramount’s financial success and longevity reflect Webcor’s commitment to quality and safety in the execution of its work. “It’s a real honor,” says Jerry Yoshida, Webcor’s Hawaiian-based counsel (and de facto father of the Hawaii captive industry.
“With over 250 captives domiciled in Hawaii, Paramount really stands out,” says Paramount's captive manager, Matt Takamine, Executive Vice President and Head of Captives at Brown & Brown. Expanding on those accolades, Webcor's Sr. Director of Insurance & Risk Management, Andy Stoelting, comments, "Receiving the Award of Excellence demonstrates what we can achieve as a company when pulling together as One Webcor. Paramount only succeeds if Webcor does, and the opposite is equally true. The two entities are married in a symbiotic business relationship, each benefiting from the existence of the other."
On behalf of Paramount, we thank Webcor and Obayashi for their commitment to the State of Hawaii in supporting the local captive insurance community by growing its capital within the State, which supports the local offices of our valued business partners. In receiving the Award, Paramount was lauded for donating to the State’s relief fund for the victims of the devasting Lahaina fire. "It was an easy decision to donate" reflects Matt Reece, who was elected to the HCIC Board in 2023 and accepted the Award on Paramount's behalf, noting, "When a disaster strikes the community you're embedded in, action is needed, and the opportunity to demonstrate your commitment to that community arises."
Paramount's commitment to the local community and concerted efforts to help grow the Hawaiian captive domicile were demonstrated again late last year with Matt Reece joining an experienced HCIC delegation of captive experts to present the benefits of captive ownership to several successful Japanese businesses, including Obayashi. Says Matt Reece, "They definitely understand the potential for profit a captive can create, but they are also acutely aware of the risk of loss. Getting comfortable with that risk takes time, trust, and experience. I'm confident we'll get there with Obayashi's backing.
"Looking back, when we formed the captive in 2003, we knew it was going to be good, but not this good!"‚ reflects Webcor, former Chief Legal Officer and Paramount's only Director Emeritus, John Bowles. "I can still remember Andy Ball walking into one of our first Paramount Board meetings, looking at the financials, and exclaiming, "Wow. Now, this is a real business!‚" It sure is. Happy Birthday, Paramount! We are so proud of your growth and leadership in the captive industry.
Author's Note: A captive insurance company operates similarly to a commercial insurer, setting actuarially determined reserves to pay for future losses, charging premiums at rates regulated by the governing authority, and paying taxes. The key difference is that the captive may have only one insured (depending on the type of the captive). In the case of Paramount, that insured is Webcor, whose deductibles Paramount insures on certain insurance lines that Webcor procures from the commercial market, including General Liability, Worker's Compensation, and Subcontractor Default Insurance.
