The common perception is that a captive insurer or risk retention group entering rehabilitation has hit the skids and is on its way out, but the opposite is sometimes true, according to a captive management company.

While most captives entering rehabilitation do eventually dissolve, some benefit from restructuring and emerge stronger and revitalized, The Towner Management Group noted in a recent report.

"Maybe one-in-10 candidates can be rehabilitated," observed Guy Ragosta, chief executive officer of TMG's U.S. Operations. "But sometimes, simply going back to basics can help a captive or RRG get back on the right track and become licensed again."

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