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While some U.S. domiciles are adding captives at a faster clip than Vermont, the Green Mountain State remains No. 1 in several key areas.
With 587 captives in 2014, Vermont is the largest U.S. domicile and the No. 3 domicile worldwide behind Bermuda and the Cayman Islands.
The nearly $30 billion in gross written premiums its captives generated in 2014 was, Vermont regulators say, more than any other captive domicile.
In addition, Vermont officials say its captive regulatory unit, with a staff of 32, is larger than any other domicile.
More than 40% of Fortune 100 companies, including Alcoa Inc., Microsoft Corp. and The Walt Disney Co., have Vermont-based captives.
Still, Vermont regulators acknowledge the state may have lost captives to states with newer captive legislation.
Some companies want their captives to be in or closer to their home state, said David Provost, deputy commissioner in the Captive Insurance Division of the Vermont Department of Financial Regulation in Montpelier.
“That is a fact of life we can live with,” Mr. Provost said.
Parents of Vermont captives say the state is a top domicile for several reasons.
“Vermont has a very sophisticated regulatory regime. They understand what questions to ask. They are very responsive and supportive,” said Janice Abraham, president and CEO of United Educators Risk Retention Group in Bethesda, Maryland. United Educators was licensed in Vermont in 1987.
The owners of captive insurers have scored major victories in cases against the IRS, but they still face uncertainties on several fronts.