The European captive insurance sector is experiencing an uptick in activity as captive owners seek optimal risk transfer solutions in the face of a hard commercial insurance market, according to A.M. Best.

A new Best’s Market Sector Report, “Europe’s Captive Sector Thrives Amidst Hardening Market,” suggests that a number of European captive insurance companies have increased retentions or limits on existing coverages, while in some cases, they’ve expanded into new lines of business as their parents look to increase the use of their captives.