Payout Profile – Term Of The Day
The payout profile or LDF are important to a company’s return on investment. This is becoming very important to recently founded Captives. The first few years that a Captive is in existence are the make or break years. LDF’s (Loss Development Factors) go hand-in-hand with payout profiles.
- Reinsurers – when analyzing the funding risk for their insureds
- Captives – the tax advantages can be enormous
- Self Insureds – inaccurate funding has contributed to some of their failures