Prudential granted license for New Jersey's first captive insurance company

TRENTON, N.J.—The New Jersey Department of Banking and Insurance has licensed the state's first captive insurance company, a single-parent captive formed by Newark, N.J.-based Prudential Insurance Co. of America.

The department issued a certificate of authority Thursday to Prudential New Jersey Captive Insurance Co., effective July 1. In a statement, New Jersey officials said Prudential would use its new captive to manage risks in its life insurance and annuity businesses.

New Jersey's captive law, which was signed by Gov. Chris Christie in February and took effect in May, was modeled in part on Vermont's statute.

“We welcome Prudential's new captive insurance company as the first captive in New Jersey and expect many more firms to form new captives or to relocate existing ones here,” Tom Considine, commissioner of New Jersey's Department of Banking and Insurance, said in a statement announcing the new captive.