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Member, Beacon International Group, Ltd.
WASHINGTONThe Labor Department has given final approval of Subaru of America Inc. using the District of Columbia branch of its Bermuda captive insurer to reinsure group term life benefits.
Under the arrangement, the branch of the captive, Pleiades Insurance Co. Ltd., will reinsure 100% of the risk with Minnesota Life Insurance Co., which currently underwrites the life insurance plan.
The plan now has 929 participants and beneficiaries.
In its most recent fiscal year ending March 31, 2009, Pleiades reported $39 million in gross annual premiums and $214 million in assets.
Cherry Hill, N.J.-based Subaru of America received approval last week for its proposal under a 1979 Department of Labor ruleknown as a class exemptionin which captives can be used to fund benefit risks of their parent companies as long as at least 50% of the captive’s premiums come from third parties.
Spring Consulting Group L.L.C. of Boston consulted on the project.