ConAgra Foods Inc. has received tentative approval from the Labor Department
to fund employee benefit risks through its Arizona-based captive insurance
company.
The Omaha, Nebraska-based branded food manufacturer wants to use its captive,
Risk Resources Ltd., to reinsure life insurance and accidental death and
dismemberment policies covering about 22,800 employees written by Prudential
Insurance Co. of America.
Captive insurers are essentially “in-house” insurance companies designed to
cover the assets and risks of its parent company or companies. The services
provided by these insurance companies are not available to the public.
ConAgra, which last year had revenue of $12 billion, now uses the captive to
fund workers’ compensation risks. Formed in Bermuda in 1981, the captive
redomesticated to Arizona last year.
Once it receives final clearance from federal regulators, which is likely,
ConAgra would be the third employer this year to obtain Department of Labor
approval to fund benefit risks through a captive.
Earlier this year, zipper manufacturer YKK Corp. of America received approval
to fund life and accidental death and dismemberment risks through its Vermont
captive, while H.J. Heinz Co. received permission to expand its Vermont captive
to fund long-term disability policies. In 2006, the Labor Department cleared
Heinz to reinsure life insurance policies through its captive.
Filed by Jerry Geisel of Business Insurance, a sister publication of
Workforce Management. To comment, e-mail editors@workforce.com.
Workforce Management's online news feed is now
available via Twitter.
= Member Only
