Federated, Ltd.
Federated, Ltd. is licensed and managed in the Cayman Islands to reinsure risks from the policy issuing insurance company, which is licensed and provides coverage in the United States. The types of coverage reinsured by Federated, Ltd. are Workers’ Compensation, General Liability, Automobile Liability, and Physical Damage.
Each shareholder is entitled to appoint a director to Federated, Ltd.’s Board of Directors. Every shareholder, regardless of premium size, has one vote. A simple majority by the Board of Directors governs. Federated, Ltd. generally operates on a five year accounting cycle, and the Board of Directors will endeavor to declare an interim distribution for an underwriting year three years after the underwriting year has ended. Each policy year's results stand alone and are divided within the Company's equity statements for illustrative purposes.
Federated, Ltd.’s management strength lies in its strong committee structure and individual involvement by shareholders. The Committees and their primary responsibilities are:
- Underwriting - Advises the Board on desirable risks to be assumed and ensures that the assumed risks are adequately underwritten.
- Risk Control - Sets loss control goals for the members. Reviews loss control reports and works with members to meet the required loss control requirements of Federated, Ltd.
- Finance and Investment - Advises the Board on policies for the investment of Federated, Ltd. assets and reviews the annual audited financial statements.
Each shareholder is encouraged to attend all Federated, Ltd. meetings and actively participate on the Committee of his/her choice. The Board relies on the recommendations of these Committees to establish policies.