Aetna to form captive in Connecticut

Hartford, Connecticut-based insurer Aetna Inc. confirmed on Friday that it is forming a captive insurance company, Aetna Risk Insurance Co., in its home state.

According to a statement released by Connecticut Gov. Dannel P. Malloy and Insurance Commissioner Thomas B. Leonardi on Friday, the captive will provide liability coverage for the company, including errors and omissions, employment practices liability, and other related coverages.

An Aetna spokeswoman confirmed the establishment of the new captive but said that the company’s Bermuda captive, Aetna Risk Indemnity Ltd., would be left in place.

“We are however moving the policies that the Bermuda captive had in place and will pretty much leave it as a dormant captive,” the spokeswoman said.

In the statement, Mr. Leonardi said the state was working to attract more captive insurers to the state.

“There are nearly 40 states that regulate captive insurers, but Connecticut is carving out a creative and attractive niche in this emerging industry by helping companies form sustainable captive operations that will be in it for the long run,” Mr. Leonardi said.