In July of 2019, years of research and analysis culminated in the formation of Sequoia Pacific Reinsurance Company; a non-profit corporation, wholly owned and controlled by the California JPIA, solely for the benefit of members.
Sequoia Pacific is a tax exempt, pure captive, domiciled in the state of Utah and is regulated by the Utah Department of Insurance. Sequoia Pacific only insures risk from its parent entity and currently covers portions of the Authority’s liability, workers’ compensation, and property programs.
Members of the Authority benefit from Sequoia Pacific primarily in three ways:
- Lower Cost of Coverage
- Less Dependence on Commercial Insurance Markets
- More Efficient Use of Capital
Lower cost of coverage is achieved through long-term reinsurance premium stabilization and through increased actuarial discount rates, which also provide a short-term benefit in pricing. Less dependence on commercial insurance means less sensitivity to market cycles and an improved capability to customize coverage. It also positions the Authority to retain some of the underwriting profits that were previously ceded to carriers. Lastly, Sequoia Pacific provides a vehicle for capital to be used more efficiently. This is accomplished through broader diversification of investments and a greater spread of asset and credit risk across non-correlated asset classes. Expanded investment operations also improves the Authority’s ability to match the duration of assets and liabilities.
The Sequoia Pacific Board is appointed by the Authority’s Executive Committee and is composed of eight Directors: four members of the Executive Committee, one Authority staff member, the Chairman of the Managers Committee, the Chairman of the Finance Officers Committee, and Utah legal counsel.
- Alexander Smith, President
- Margaret Finlay, Vice President
- Jose Gomez, Treasurer
- Kenneth Birrell, Secretary
- Tom Chavez, Director
- Sonny Santa Ines, Director
- Mark Waronek, Director
- Thaddeus McCormack, Director