Vermont increased its number of captive-insurance companies in 2011 from the two previous years as the state continues to see growth in that industry, capturing six captives that were domiciled elsewhere.
The state released its figures Jan. 10, stating that in 2011 Vermont licensed 41 new captive-insurance companies, according to data released by the Vermont Banking, Insurance, Securities and Health Care Administration (BISHCA).
Last year the state announced it licensed 33 new captive-insurance companies in 2010, down from the 39 it licensed in 2009.
The top industries licensing captives in the past year in Vermont were insurance, hospitals and medical groups, and manufacturing. Vermont also had activity in risk-retention groups, which continue to be a growth sector, BISHCA says.
Of those licensed in 2011, there were 30 single-parent captives, six risk-retention groups, three sponsored, one industrial insured and one association captive. The addition of 2011’s new captive-insurance licensees brings Vermont’s overall total to 952 with 590 active captive-insurance companies, according to BISHCA.
Daniel Towle, director of Financial Services for the state, tells NU that Vermont is seeing a surge of growth, which he says is the result of its established reputation as a domicile. He notes that of the 41 captives formed, two were in the energy industry, six in health care, five in manufacturing, 11 in insurance and four were religious institutions.
He adds that there were six redomestications to Vermont, from both onshore and offshore domiciles.
As 2012 begins, two new captives have been licensed, and there are already four applications pending, according to Towle. “The overall market may be soft, but it is also very dynamic, and we expect good things to come from 2012,” he says.