Congratulations to the State of Vermont on licensing 33 new captives in the State in 2015! The list is made up of 12 pure captives, 7 Risk Retention Groups (RRGs), 7 sponsored captives, 4 special purpose financial insurers, 2 industrial insured captives, and 1 association captive. Growth in 2015 was up significantly from 2014 when 16 companies were licensed. This growth is impressive especially when considering the prolonged soft market and added competition by other U.S. states.
What I thought was really impressive was that there were 11 ‘redomestications’, which is when an existing captive moves from another captive domicile to Vermont. That is the largest number ever to occur in a single year in Vermont. The redomestications came from the following jurisdictions: South Carolina (3), Arizona (3), Bermuda (2), Cayman Islands, Nevada, and Kentucky. This has more to do with Vermont providing a firm, fair, efficient and consistent regulatory environment than anything else.
Seven new RRGs were licensed in Vermont, bringing the active total to 89. Vermont continues to hold a dominant market share with over 60% of all RRGs premium volume being written by Vermont companies. Six of the 11 redomestications to Vermont were by Risk Retention Groups. New captives were licensed in insurance, healthcare, construction, real estate, professional services, education, transportation, agriculture, retail, and other.
Besides the newly licensed captives in healthcare, notable captives in the class of 2015 include PricewaterhouseCoopers LLP; Syracuse University; Cummins, Inc.; Marubeni Corporation; Willis Management (Vermont), Ltd.; National Life Insurance Company; Wilbur-Ellis Company; Zurich Insurance Group; and 17 Universities/Colleges.
2015’s new licensees bring Vermont’s overall total licenses to 1062 with 588 active captive insurance companies. Compared to Cayman (22), Bermuda (22), South Carolina (21), Vermont’s 33 is proof there is no place like it for captives. One day we will rule the world (did I say that out loud?)…
Thank you all very much, and I look forward to hearing from you.