Hudson Management Group (HMG), National Interstate’s newest subsidiary located in St. Thomas, USVI, was established to better focus the design and delivery of products and services to the Alternative Risk Transfer (ART) marketplace. Specifically, our staff of accounting, marketing, customer service and claims personnel have been trained to meet the specific needs and expectations of our group captive policyholders.

At most insurance companies, the products and services provided to the ART market must compete with the traditional insurance products for available resources. At HMG, our people work exclusively with our ART participants and have multiple procedures and processes to master as the needs of captive program participants vary significantly from those of our traditional insurance customers.

National Interstate has established its ART off-shore management and customer services center in St. Thomas for several reasons. The first reason was to separate and focus ART products and services in a unique Caribbean location. The Caribbean is the center of the captive management universe in this hemisphere. The USVI is a Territory of the USA and as such has the benefits of US protection and its legal structure. United States citizens manage these products and provide these services to our customers. The USVI has offered HMG attractive corporate income tax benefits that level the competitive standing of HMG with other Caribbean based captive management companies and will serve to keep our costs for these unique services competitive.

We believe the establishment of HMG to exclusively service our group captive and ART customers is an extremely positive outcome for everyone involved. Our customers receive captive program services from professionals who focus exclusively upon their needs. The tax benefits HMG is eligible to receive will help ensure its costs remain competitive with other “off shore” captive management companies. We are pleased to confirm our interest and commitment to meeting the needs of captive program participants with the establishment of our new HMG subsidiary.