This all-purpose term means one of three different things:
- The amount initially needed to set up a captive or the initial amount paid in
- The total of this paid-in capital plus other forms of capital, such as letters of credit
- The sum of the two forms of capital (listed above) plus accumulated surplus.
The difference between capital in a captive and other forms of insurance capital is that it is usually considered risk capital by the owners, ready to be used up by adverse results of the business.