Labor approves Deutsche Bank unit funding LTD using captive insurer

WASHINGTON—The Labor Department has given final authorization to New York-based Deutsche Bank Americas Holding Corp. to use its Vermont captive to reinsure long-term disability benefits.

Under the arrangement approved last week, MHL Reinsurance Ltd., which was licensed in Vermont in 2005, will reinsure 100% of the LTD risk with a unit of Unum Group.

On a related front, the Labor Department earlier this month gave final approval to Basking Ridge, N.J.-based Verizon Communications Inc.’s application to use its Vermont captive to reinsure group term life insurance coverage written by Prudential Life Insurance Co.