Irene Sudac Advisory

I built and ran captives, finance and insurance. Now I help manufacturers work out whether they should have one.

No commission. No management contract afterwards. Nothing to sell you once the question is answered. So I can tell you not to do it.

How the review works
Irene Sudac
Snap-on Incorporated, financial services segment, 2022
Share of group revenue~6%
Share of group operating earnings~22%
Delinquency, 60 days and over, US book1.3%

I was responsible for these businesses. The revenue and delinquency figures are in the company's published results; the earnings share is calculated from them.

Manufacturing floor in the New York / New Jersey corridor

Aerospace, medical devices and specialty chemicals across Connecticut, New Jersey and New York.

Two things are called a captive

Most advisers work on one. Different regulators, different economics, and usually different people inside your company.

The two, and what each one does
Captive finance
An in-house bank. Lends to your customers or your dealers so they can buy what you make.
Captive insurance
Your own insurer. Carries risks you understand better than the market prices them.

At Snap-on I ran both, supporting the same franchise network. Which means I can tell you whether the two should be talking to each other. In most companies they are not.

Where I work

Manufacturers and franchise or dealer networks large enough that a captive is a real decision rather than a tax idea. Aerospace and defense suppliers in Connecticut, pharmaceutical and medical device manufacturers in New Jersey, and the industrial base across the New York corridor.

I am not a broker, a captive manager, or a tax adviser. I do not form entities or place insurance. Nothing waits for me on the other side of a yes.

Is a captive worth studying in your situation?

Four questions, two minutes. It will tell you no if the answer is no. Nothing you enter leaves your browser.

Roughly what do you spend a year on the lines you would consider putting in a captive?
Over the last five years, how predictable have your losses been?
Is there a franchise, dealer or member network attached?
Could your organization commit to this for five years or more?

Talk to Irene
(617) 653-6010 issudac@gmail.com