Kentucky Captive Domicile

Kentucky Department of Insurance

While Kentucky has not seen its captive count increase in recent years, the domicile, which had 32 captives at the end of 2023, has many attractive features that could lead to more growth ahead, captive experts say.

"Kentucky has the capacity to grow. The captive law is a very good one and the state captive regulatory staff is comprised of talented and very experienced individuals," said Chaz Lavelle, a partner with the law firm Dentons Bingham Greenebaum L.L.P. in Louisville.

"We have high-quality regulation, with regulators easily accessible," said Stuart Ferguson, managing director of the Underwriters Group Inc. in Louisville and chairman of the Kentucky Captive Association.

The parents of Kentucky captives, state regulators note, are diverse.

"Kentucky has not specialized in a particular type of captive or industry. The industries and coverages insured span the spectrum. Kentucky captive owners come from a number of industries including automobile, health care, energy, manufacturing, real estate and construction, banking, and shipping/transport and logistics," said Russell Coy, captive coordinator at the Kentucky Department of Insurance in Frankfort.

Of Kentucky's 32 captives, 23 are pure captives, 6 are group/association captives, and 3 are risk retention groups. Kentucky does not license cell captives.

Kentucky captive insurers range significantly in size. For example, in 2021, 7 captives wrote more than $5 million in premiums, while 6 wrote between $2 million and $5 million in premiums, and 21 wrote between $1 million and $2 million in premiums.

Kentucky's premium taxes are modest, with a 0.40 percent tax up to $20 million, with the tax rate falling to 0.30 percent on premiums between $20 million and $40 million, 0.20 percent on premiums between $40 million and $60 million, and .075 percent for premiums exceeding $60 million.

Capital and surplus requirements vary by type of captive. For example, the minimum capital and surplus requirements for a single-parent captive and special-purpose captives is $250,000 and $500,000 for consortium/association captives, as well as for industrial insured and agency captives.

Company Contacts

Financial Standards and Examination Division
(502) 782–5274

Mailing Address:
PO Box 517
Frankfort, KY 40602–0517
(502) 782–5274

Virtual Contact:

Captive Domicile Summary

Kentucky adopted its captive legislation in 2000 and implemented updates in 2005. Since that time, state regulators have actively pursued building a captive insurance industry. The state fosters a progressive regulatory approach and a low-cost business environment balanced with financially conservative fundamentals. As a result, it has experienced significant growth in captive insurance activities. Based on the estimated number of captives, Kentucky ranks in the top 15 domiciles in the United States and in the top 25 internationally.

Captive Domicile Statistics

Total Captive Count* Kentucky
Year Captives
2023 32
2022 32
2021 34
2020 45
2019 53
*Excludes inactive captives and does not include cell captives.
Captives' Gross Written Premiums Kentucky
Year Premium Volume
2023 $129 million
2022 $129 million
2021 $62.3 million
2020 $55.8 million
2019 $107 million
2018 $108 million