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VERMONT SURPASSES 900 LICENSE MARK FOR CAPTIVESCaptive Insurance Formations Continue at Brisk Pace
MONTPELIER – The State of Vermont has issued its 900th captive insurance company license to Lincoln Financial Group, according to the Vermont Department of Banking, Insurance, Securities and Health Care Administration (BISHCA). With assets under management of $140 billion, Lincoln Financial offers annuities; life, group life and disability insurance; 401(k) and 403(b) plans; savings plans; and comprehensive financial planning and advisory services. Vermont’s 900th license means the state has issued more than four times as many captive licenses than its next closest domestic competitor. “This benchmark gives Vermonters a strong sense of pride and achievement that our commitment to this industry for nearly 30 years has been heard loud and clear,” said Governor Jim Douglas. “Vermont will continue to offer a stable regulatory environment, governmental officials that are accessible, and world-class professional support services.” “While reports show limited activity in the captive sector, Vermont is bucking the trend with a strong first half of the year and it is very encouraging that interest continues to be robust,” said Dan Towle, Vermont’s Director of Financial Services for the Vermont Agency of Commerce & Community Development. “We’re going to continue our efforts to grow Vermont’s captive industry and maintain our lead as the ‘Gold Standard’ of captive domiciles.” Special purpose financial captives (SPFC) formed in the State of Vermont for the securitization of insurance reserves has been a strong growth sector for the Green Mountain State. Vermont currently has more than 20 SPFC’s that wrote more than $6 billion in gross written premium last year. “There is no better place than Vermont for special purpose financial captives,” said Towle. Captive insurance is a regulated form of self-insurance that has been around since the 1960’s as an alternative to the traditional insurance market. It is typically when a large company or group of companies chooses to create their own insurance company to better manage and finance their own risk. A captive is a form of alternative insurance. Captive insurance companies have been a form of Vermont insurance since 1981, when Vermont passed its initial legislation. A captive is most often used for corporate lines of insurance such as property, liability, and workers’ compensation. Find out more about Vermont’s captive insurance industry on the web at: www.VermontCaptive.com ### [ For a historical perspective on Vermont's growth, see their year-end 2009 report. ] |
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