Advantage Insurance

What Advantage Insurance does

Advantage Insurance Inc. is a privately held specialty insurance group headquartered in San Juan, Puerto Rico, operating across two primary business lines: Life Insurance and Business Insurance. The Life Insurance segment issues Private Placement Life Insurance (PPLI) and Private Placement Variable Annuity (PPVA) products, structured as Variable Universal Life (VUL) and Variable Annuity (VA) policies, to high-net-worth individuals and families for inter-generational wealth transfer, estate planning, business succession, and charitable giving. The segment administers more than 700 in-force policies representing over $7 billion in separate account assets, distributed exclusively through professional advisors and intermediaries rather than retail channels, with transparent fees, no upfront commissions, and an open-architecture investment platform spanning separate accounts, insurance-dedicated funds, hedge funds, private equity, and alternative investments.

The Business Insurance segment provides turn-key captive insurance management services, including protected cell captive structures, Risk Retention Group (RRG) management, agency and group captives, life insurance captives, consulting and advisory, and a proprietary risk diversification sourcing product. Advantage ranks as the 5th largest US captive manager by number of RRGs under management and the largest independent captive manager (since the top four are owned by brokerage houses or insurance carriers). The segment serves small and medium-sized business owners across physician groups, healthcare facilities, transportation/logistics, manufacturing, and construction.

The company's platform architecture spans multiple captive insurance domiciles (Cayman Islands, Puerto Rico, Vermont, South Carolina, Bermuda, Arizona), supported by a specialty insurance administration platform built on OneShield Software combined with proprietary captive management operations. Revenue is generated through life insurance premiums and policy administration fees, captive management services (quote-based, engagement-specific), consulting and advisory fees, and private-label life insurance company sponsorship. The platform is further extended by a private commercial bank subsidiary (Advantage International Bank Corp., commenced operations January 1, 2016) and an investment management subsidiary (BasePoint Capital LLC / BasePoint Advisors LLC, acquired January 2020). The company is led by founder Ian Kilpatrick, a pioneer of captive insurance, and current CEO William C. Buell (appointed April 20, 2022), with senior management drawn from Willis Towers Watson, PwC, KPMG, J.P. Morgan, Citi, and other major financial institutions.

Name

Advantage Insurance

Legal name

Advantage Insurance Inc.

Website

https://advantagelife.com

Company type

Private

Founded year

1999

Operating status

Operating

Headcount range

101–250 employees

Short description

Advantage Insurance Inc. is a privately held specialty insurance group operating a multi-jurisdiction platform across Puerto Rico, the US, Bermuda, and the Cayman Islands, providing private placement life insurance and annuities to high-net-worth individuals and captive insurance management services to business owners, with 700+ in-force policies, $7B+ in separate account assets, and a banking subsidiary.

Ownership category

akta.pro rank

Product category

Specialty Insurance and Captive Management

NAICS

Direct Health and Medical Insurance Carriers (524114), Agencies, Brokerages, and Other Insurance Related Activities (5242)

SIC

Life Insurance (6311), Insurance Agents, Brokers & Service (6411)

akta.pro primary industry

Participating (Dividend) Whole Life Insurance (FSAIABAI)

akta.pro secondary industry

Variable Universal Life (VUL) Insurance (FSAIABAD)

Keywords

• Private placement life insurance
• Captive insurance management
• Risk retention groups
• Protected cell captives
• Specialty insurance services

Headquarters

HQ city

San Juan

HQ country

Puerto Rico

HQ region

Latin America

Offices6 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales, Infrastructure

Revenue model

1. Life Insurance Premiums (PPLI/PPVA): Issuance of private placement life insurance and annuity policies (Variable Universal Life and Variable Annuity) on a private placement basis to high net worth individuals. Recurring premiums plus policy administration fees on over 700 in-force policies representing more than $7 billion in separate account assets. Open-architecture fees and transparent expense structure.
2. Captive Insurance Management Services: Turn-key captive management services including formation, ongoing management, accounting, structuring, regulatory, compliance and operational support. Manages traditional single-parent captives, large Risk Retention Groups (RRGs), wholesale sponsors of protected cell captives, agency and group captives, and life insurance captives. Nationwide ranking as 5th largest captive manager by number of RRGs under management.
3. Consulting and Advisory Services: Engagement-based consulting including feasibility studies for new captive structures, restructuring advice, and rescue services for existing captives not performing as planned. Independent advisory without pressure to cross-sell insurance brokerage or ancillary products.
4. Private Label Insurance Company Sponsorship: Management of "private label" life insurance companies on behalf of wealth management firms seeking to build their own brand identity in a crowded marketplace. Advantage Life & Annuity Company SPC and other sponsored protected cell life insurers.

Pricing tiers

Go-to-market motion3 records

Distribution channels1 record

Marketing channels6 records

Core offering

Advantage Insurance is a privately held specialty insurance group that issues Private Placement Life Insurance (PPLI) and Private Placement Variable Annuity (PPVA) products on a private placement basis to high-net-worth individuals for wealth transfer, estate planning, and business succession. The Business Insurance segment provides turn-key captive insurance management services — formation, ongoing management, accounting, regulatory, compliance and operational support — for single-parent captives, Risk Retention Groups, agency and group captives, and life insurance captives. Operating across Puerto Rico, the United States, Bermuda, and the Cayman Islands, Advantage administers more than 700 in-force life insurance and annuity policies representing over $7 billion in separate account assets.

Product overview

Advantage Insurance Inc. operates a platform-plus-modules architecture organized around two primary lines of business — Life Insurance and Business Insurance — with a separate banking subsidiary. The Life Insurance segment is anchored by Private Placement Life Insurance (PPLI) and Private Placement Variable Annuity (PPVA) products, issued as Variable Universal Life (VUL) and Variable Annuity (VA) policies through a portfolio of life insurance subsidiaries (Advantage Life Assurance I.I., Advantage Life Puerto Rico A.I., Advantage Life & Annuity Company SPC, Advantage International Life Bermuda Limited, Advantage International Life Insurance Limited, and Bermuda Life Worldwide Limited), administering more than 700 in-force policies representing over $7 billion in separate account assets. The Business Insurance segment provides turn-key Captive Management Services spanning Protected Cell Captives, Agency & Group Captives, Risk Retention Groups (RRGs), Life Insurance Captives, Consulting and Advisory Services, and Risk Diversification Sourcing, delivered through subsidiaries including Advantage Business Insurance Company I.I., Advantage Insurance Management (USA) LLC, Advantage Insurance of Vermont PCC, Advantage International Management (Cayman) Ltd., and Advantage Property & Casualty Company SPC. Completing the platform, the Advantage International Bank Corp. (AIBC) subsidiary — a private commercial bank that commenced operations on January 1, 2016 — serves the needs of specialty insurance companies and their private clients, while BasePoint Capital LLC operates as an investment management arm. Together, these modules allow Advantage to deliver integrated insurance and risk management solutions to high-net-worth individuals and business owners from offices in Puerto Rico, the United States, Bermuda, and the Cayman Islands.

Differentiator

Problem solved

Functional benefit

Products and services

• Private Placement Life Insurance (PPLI) and Private Placement Variable Annuity (PPVA) Variable Universal Life and Variable Annuity policies issued on a private placement basis to high-net-worth individuals via professional advisors, providing bespoke solutions for inter-generational wealth transfer, estate planning, business succession, and charitable giving. Open-architecture underlying investments (separate accounts, insurance-dedicated funds, hedge funds, private equity, alternatives) with transparent fees and no up-front commissions.
• Captive Management Services Turn-key captive management solutions for single-parent captives, Risk Retention Groups, agency and group captives, life insurance captives, and protected cell structures across multiple jurisdictions (Cayman Islands, Puerto Rico, Vermont, South Carolina, Bermuda, Arizona). Services cover full lifecycle: feasibility, formation, ongoing management, accounting, regulatory, compliance, and operational support.
• Consulting and Advisory Services Independent insurance consulting including feasibility studies for new captive structures, restructuring advice, and rescue services for under-performing existing captives. Provided on an engagement basis with no cross-sell pressure for brokerage or ancillary products.
• Risk Diversification Sourcing Solution for single-parent captives and other structures requiring assumption of unaffiliated third-party risk, allowing captives to retain 100% of their own risk while supplementing it with high-quality traditional market risk sourced from global insurance markets, avoiding the shortcomings of typical industry risk pools.
• Private Label Insurance Company Sponsorship Management of private-label life insurance companies on behalf of wealth management firms seeking to build their own brand identity in a crowded marketplace, leveraging sponsored protected cell life insurers (e.g., Advantage Life & Annuity Company SPC and other sponsored entities).
• Advantage International Bank Corp. (AIBC) Private commercial bank serving the banking needs of specialty insurance companies and their private clients, operated as a wholly-owned subsidiary under President Eduardo Colón.

Quantifiable outcome

• Administering more than 700 in-force life insurance and annuity policies representing over $7 billion in separate account assets
• +1 more outcomes

Segments5 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature4 records

Partnerships

Seven partnerships are on record, tiered flagship / core technology partner for life insurance, core investment subsidiary and major m&a partner (acquired).

• OneShield Softwareflagship / core technology partner for life insuranceTechnology or Integration · 5 February 2016Announced February 5, 2016, OneShield Software entered the Life Insurance market with Advantage Insurance as its partner. The partnership supports the technology platform behind Advantage's Life Insurance Segment (issuance of life insurance and annuity policies on a private placement basis). Reinforced by Advantage's December 2015 announcement of plans to grow in Puerto Rico.
• Puerto Rico International Insurers Association (PRIIA)
• National Risk Retention Association (NRRA)
• Vermont Captive Insurance Association (VCIA)
• International Center for Captive Insurance Education (ICCIE)
• BasePoint Capital LLC / BasePoint Advisors LLCcore investment subsidiaryStrategic or Co-development PartnerEric Schneider (Chief Investment Officer of Advantage Insurance Inc.) acquired a controlling interest in BasePoint in January 2020 and serves as CEO of both BasePoint Capital LLC and BasePoint Advisors LLC. BasePoint is positioned as a key investment management arm for Advantage's insurance operations.
• U.S. Commonwealth Life / U.S. Commonwealthmajor m&a partner (acquired)Strategic or Co-development PartnerAdvantage acquired U.S. Commonwealth Life in Puerto Rico (announced via GlobeNewswire November 14, 2016). Effective January 1, 2022, U.S. Commonwealth Life, A.I. entered into a plan and agreement of merger with Advantage Life Assurance I.I. The acquisition supported Advantage's leadership in the Puerto Rico International Insurance Center.

Scale indicators7 records

Recent moves7 records

Expansion highlights6 records

Direct peers

• Artex Risk Solutions: Independent captive management and cell company sponsor operating across Cayman, Bermuda, and US domiciles; competes head-to-head with Advantage for protected cell and RRG mandates.
• Corient: Large multi-family office that provides private placement life insurance solutions for ultra-high-net-worth clients, competing for the same HNW professional advisor channel.
• Aon Captive & Insurance Management: Aon's global captive management practice spans single-parent, protected cell, and group captives across multiple domiciles, overlapping directly with Advantage's Business Insurance segment.
• IronPoint (formerly R&Q Captive Management): Independent captive manager with operations in Vermont, Cayman, and other domiciles, directly competing with Advantage for RRG, group captive, and protected cell mandates.
• Strategic Risk Solutions (SRS): Independent captive management firm with a multi-domicile platform (Cayman, Vermont, Hawaii, etc.), directly comparable to Advantage in serving RRGs and protected cell sponsors.
• Lombard International: Specialist provider of private placement life insurance and annuities to HNW individuals, the closest direct competitor to Advantage's Life Insurance segment.
• Marsh Captive Solutions: Captive insurance management arm of Marsh McLennan, one of the top US captive managers. Directly competes with Advantage in protected cell, RRG, and group captive management, but is owned by a large broker.

Broad incumbents

• PwC Bermuda / PwC Cayman (Insurance Captive Services): Big Four captive management and advisory practice with deep Bermuda/Cayman footprints; competes with Advantage's consulting and captive management offerings at the upper end.
• Hannover Re / Munich Re (Life Reinsurance): Major life reinsurers involved in private placement life structures and captive reinsurance; sit alongside Advantage as broader market participants in PPLI/captive reinsurance.
• Willis Towers Watson Captive Practice: Major brokerage's captive and RRG advisory practice (where Advantage's Christina Kindstedt previously worked); a competitor and a feeder of talent and clients in the captive ecosystem.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat6 records

Key risks6 records

Key highlights7 records

Customer concentration

Revenue estimate

Valuation estimate

Number of profiles

Profiles14 records

Subsidiaries15 records

Funding overview

Funding rounds1 record

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Advantage Insurance