Coca-Cola wins World Captive Forum's Award of Excellence
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AVENTURA, Fla. — The Coca-Cola Co. on Tuesday was honored with the World Captive Forum's Award of Excellence.
Laurie R. Solomon, director of risk management, and Stacy Apter, director of global benefits financing and asset management, were honored on behalf of Atlanta-based Coca-Cola for thought leadership in the global use of a captive insurance company, contributions to the enterprise's strategy and objectives, and contributions to risk and insurance professionals.
Coca-Cola started its first captive insurance company in 1992, mainly for property coverage and later moved into employee benefits on a worldwide basis.
In 2010, the company received U.S. Department of Labor approval for an innovative plan to use its South Carolina-domiciled captive, Red Re Inc., to fund retiree health care obligations. Coca-Cola is waiting for a private letter ruling from the Internal Revenue Service before proceeding. It also uses its Dublin-based captive, Coca Cola Reinsurance Services Ltd. to reinsure four pension plans in Europe.
More recently, Coca-Cola received tentative authorization from the DOL to fund life insurance risks through Red Re.
Coca-Cola “has used these programs in a very thoughtful way and in a way that helps captive insurance companies and further the profession,” said Michael Lusk, vice president of insurance and risk management at Decatur, Ill.-based Archer Daniels Midland Co., who presented the award Tuesday to Ms. Solomon and Ms. Apter at the 22nd annual World Captive Forum in Aventura, Fla.
Coca-Cola's use of its captives “is not just groundbreaking in the financial implications, but also in the working partnership that is forged between finance and human resources,” Mr. Lusk said, who was last year's award recipient.
