Losses paid

Losses paid, or claims paid are the amounts that a captive insurance company pays to its insureds or to third party reinsurers for the losses that occur under the policies that the captive issues.

Example:
If Company A forms a captive insurance company, Captive A, to insure its own
risks, and company A suffers a property damage loss of $500,000 that is
covered by captive A, then captive A’s losses paid, or claims paid for that loss is $500,000.