NU Online News Service, May 11, 12:10 p.m. EDT
A page-one New York Times article this week slammed state captive insurance laws, stating that they allow companies to “conduct Bermuda-style financial wizardry” in the U.S., but the Times company, it turns out, has its own captive domiciled in New York.
Captive insurance is a regulated form of self-insurance that has been in use since the 1960s.
The Times’ captive, named Midtown Insurance Co., is listed as a consolidated subsidiary of The New York Times Co. in its 10-Q filing for the U.S. Securities and Exchange Commission, filed Nov. 8, 2007 for the period ending Nov. 30, 2007.
A New York State Insurance Department (NYSID) spokesperson confirmed that the Midtown Insurance Co. captive is still viable.
According to an examination report on the captive by the NYSID, signed by former New York Insurance Superintendent Eric Dinallo on Jan. 29, 2009, the captive was managed by Marsh Management Services as of July 1, 2003. It was incorporated as a pure captive on May 15, 2003.
The document says that for the period ended Dec. 31, 2007, the company’s insurance coverage consisted of fleet and multimedia, Terrorism Risk and Insurance Act (TRIA) coverage, property, weather, excess umbrella liability and inland marine.
The captive owned by the Times is domiciled in New York, which unlike Vermont, does not publicize information about parent companies of captives, according to a captive manager. The Times also did not include details about its captive in its SEC statements.
The New York Times did not respond to inquiries from NU Online News Service.