Vermont captive formations slow in 2014
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Vermont, the largest domestic captive insurer domicile, licensed 16 captives in 2014, down from 29 in 2013, as the soft market and competition from other states slowed growth, state officials said Thursday.
Even with fewer formations, however, gross written premiums are expected to rise to $29.8 billion, up from $27.5 billion in 2013.
“2014 was another good year for captives in Vermont,” Gov. Peter Shumlin said in a statement.
Of the 16 new captives, 10 are single-parent captives, two are sponsored captives, two are special financial insurers, one is an association captive and one is a risk retention group.
Organizations that set up captives in Vermont last year include Aon Risk Services Cos. Inc., Drexel University, MasterCard International Inc., Swiss Re Life & Health America Holding Co. and Union Carbide Corp.
“The quality of Vermont's 2014 licensees continues to be outstanding,” Dave Provost, the state's Montpelier, Vermont-based deputy commissioner of captive insurance, said in the statement.
The newly licensed captives bring Vermont's total to 581, making Vermont, by far, the largest captive domicile in the United States and the third largest worldwide.
In all, Vermont has licensed 1,029 captives since it approved its first one — set up by BF Goodrich Co. — in Sept. 1981, several months after the state passed its trailblazing captive statute.
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