Company formed to insure the risk of its parent corporation. A captive may be formed for a variety of reasons, including tax benefits, improved investment returns, or the lack of other insurance alternatives.

a closely held insurance company whose insurance business is primarily supplied by and controlled by its owners and in which the original insureds are the principal beneficiaries

a company established to insure or reinsure the risk of its parent or associated third parties

a company established to insure the risks of a parent organization and affiliated companies

A prisoner taken by force or stratagem, esp., by an enemy, in war; one kept in bondage or in the power of another.

Made prisoner, especially in war; held in bondage or in confinement.

Of or pertaining to bondage or confinement; serving to confine; as, captive chains; captive hours.

To take prisoner; to capture.