NU Online News Service,Jan. 13, 11:56 a.m. EST

The State of Vermont said it licensed 33 newcaptive insurance companies in 2010, down from the 39 it licensedin 2009.

But captive formation was up overall from 2009when taking into account dissolutions.

The domicile also surpassed the 900-licensemilestone in 2010, according to data released by the VermontDepartment of Banking, Insurance, Securities and Health CareAdministration (BISHCA). 

Dan Towle, Vermont's director of FinancialServices, told NU Online New Service that although captivegrowth is down slightly, "it's solid growth, with fewerdissolutions. Last year our net was in the single-digitnumbers."

He added, "We were happy with 39 [in 2009] andwe're happy with 33 [in 2010], considering it's a weak economy in asoft market."

Vermont's new governor, Peter Shumlin, said ina statement, "I am extremely proud of the outstanding performanceand leadership that Vermont delivers to the captive insuranceindustry. As the new governor of Vermont, I will continue to dowhatever is necessary to keep pace with the needs of this importantsector."

Mr. Towle said Gov. Shumlin, who replaceslong-time governor and captive industry supporter Jim Douglas,served in the Senate representing Windham County for 13 years andhas been a steadfast supporter of the captive industry.

"We expect nothing but continued support fromthe governor," Mr. Towle said.

The new captives formed include 19 purecaptives, nine special purpose financial captives (SPFC), four newrisk retention groups, and one industrial insured captive, bringingthe total number of licenses issued in Vermont to 911.

"The activity in 2010 reflected a widediversity of lines, with new energy in securitization and healthcare," said David Provost, deputy commissioner ofBISHCA. "The applications were of very high quality, andwe anticipate continued growth in 2011—and we are committed toallocating the resources necessary to provide consistent andquality service," he added.

Some of the companies in the class of 2010include:  NBC Universal, Inc.; PricewaterhouseCoopers LLP;Aetna Inc.; Procter & Gamble Company; Crowe Horwath LLP; TowersWatson & Co. and Nationwide Financial Services,Inc. 

"Vermont will not rest on its laurels and weremain committed to being the gold standard of domiciles," saidGovernor Shumlin.  "Vermont is aggressively pursuing newopportunities to expand the captive industry. While some of ourdomestic competitors have reduced their commitment to promoting andregulating captives, Vermont is investing in this valuable sectorof our economy," Shumlin said. 

Vermont is the largest captive insurancedomiciles in the U.S. and the third largest in the world, with over$17 billion in gross written premium estimated in2010. 

For more information on Vermont's captiveindustry, visit www.VermontCaptive.com.