captive insurance company

captive insurance company definition - finance
An insurance company that is owned or controlled by another insurer or a small number of client firms. The owner or company controlling the insurance company helps to fulfill its business objectives by having a captive company. The arrangement also may provide some tax advantages to the owner.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.