CAPTIVE INSURANCE

6 Months Ended

Jun. 30, 2021

13.	CAPTIVE INSURANCE

The Company and other companies are members of an offshore heterogeneous group captive insurance holding company entitled Navigator Casualty, LTD. (NCL). NCL is located in the Cayman Islands and insures claims relating to workers’ compensation, general liability, and auto liability coverage.

Premiums are developed through the use of an actuarially determined loss forecast. Premiums paid totaled $214,510 and $189,958 for the six months ending June 30, 2021 and the year ended December 31, 2020, respectively. The loss funding, derived from the actuarial forecast, is broken-out into two categories by the actuary known as the “A & B” Funds. The “A” Fund pays for the first $100,000 of any loss and the “B” Fund contributes to the remainder of the loss layer up to $300,000 total per occurrence.

Each shareholder has equal ownership and invests a one-time cash capitalization of $36,000. This is broken out into two categories, $35,900 of redeemable preference shares and $100 for a single common share. Each shareholder represents a single and equal vote on NCL’s Board of Directors.

Summary financial information on NCL as of September 30, 2020 is:

Total assets	$	96,020,037
Total liabilities	$	46,176,680
Comprehensive income	$	8,820,830

NCL’s fiscal year end is September 30, 2020.

	June 30, 2021		December 31, 2020
Investment in NCL
Capital	$	36,000	$	36,000
Cash security		194,167		158,785
Investment income in excess of losses (incurred and reserves)		3,320		3,320
Total	$	233,487	$	198,105