NU Online News Service, July 15, 2:48 p.m.EDT

The Prudential New Jersey Captive Insurance Co. (NJCAP) has beenapproved as the first captive insurer to be licensed in the state,according to the New Jersey Department of Banking andInsurance.

The deparment issued a certificate of authority, effective July1, to NJCAP to form a pure captive.

Gov. Chris Christie signed in February legislation allowing captives to be formed in New Jersey.

"It is fitting that Prudential, a Newark-based domestic insurer,charters the first captive insurer in New Jersey," says New JerseyInsurance Commissioner Tom Considine in a statement.

Prudential established NJCAP to manage risk in a portion of itslife insurance and annuity policies, the department says. As a NewJersey-based captive, NJCAP will have a New Jersey-based managementteam and board of directors and will be subject to New Jerseycaptive-insurance laws, regulation and oversight.

"We are pleased to be the first company to establish a captivefor reinsurance purposes in New Jersey, and appreciate the level ofcollaboration with the New Jersey Department of Banking andInsurance on this initiative," says Beverly Barney, vice presidentand actuary for Prudential.

New Jersey established a captive-insurance website in May called "Captive Corner" thatprovides information for companies seeking to establish captives,including regulatory guidance, forms and links to admissionpackets, according to the New Jersey Captive Insurance Association(NJCIA).

Gregg Sgambati, president of NJCIA, says in a statement, "TheNew Jersey Captive Insurance Association is clearly jubilant to seethe first captive formed in New Jersey within two months of the lawgoing into effect."

He adds that it is "very suitable that the first captive isowned by one of New Jersey's largest employers and mostrecognizable industry names."