They are the most popular and innocuous form of agency captives, typically created and sponsored by large multiline insurance companies. Participating agents and the sponsoring insurer each purchase one share of the captive's stock, which funds the captive's capital and surplus. The sponsoring insurer provides reinsurance, fronting, and ancillary services. Agents take a share of the captive's retention; the sponsoring insurer takes the rest. Participating agents commit to placing a minimum amount of business with the sponsoring insurer, which cedes the captive's percentage.