Vermont captive formations up sharply

Vermont regulators licensed 14 captive insurers during the first seven months of 2015, up from just six captives during the same period last year.

“This strong start to the year is encouraging. Considering there are more choices than ever to domicile your captive, I am glad that when quality companies evaluate their options that they choose Vermont,” Dave Provost, deputy commissioner of captive insurance in Montpelier said in a statement Friday.

Sponsors of the newest captives include such well-known organizations as Cummins Inc., Marubeni Corp., PricewaterhouseCoopers L.L.P. and Syracuse University.

Of the newly licensed captives, seven are single-parent captives, three are risk retention groups, one is an association captive, one is a special purpose financial captive, one is a sponsored captive and one is an industrial insured captive.

The new formations bring Vermont’s captives to 584, making the state the largest captive domicile in the United States by far and the third largest worldwide.

In all, Vermont has licensed 1,043 captives since it approved its first one — set up by BF Goodrich Co. — in September 1981, a few months after the state passed its trailblazing captive legislation.