Louisiana Department of Insurance
While Louisiana is an older captive insurance company domicile—the state's captive statute was passed in 2008 and took effect the following year—Louisiana remains a very small domicile.
Currently, Louisiana has just one captive, Western Re Inc., which was licensed in 2013, and generated $46 million in direct written premiums in 2020.
While state insurance officials do not anticipate future significant growth, they are very willing to work with potential captive sponsors.
"We are happy to work with any companies that are interested in Louisiana and meet our requirements," said a spokeswoman for the Louisiana Department of Insurance in Baton Rouge.
Requirements that captives must meet include, in the case of single-parent captives, maintaining capital and surplus of at least $500,000, while association captives must have at least $1 million in capital and surplus.
In addition, a captive's board of directors has to meet quarterly each year. In order to pay dividends from their capital and surplus, captives are required to obtain the permission of Louisiana's insurance commissioner.
Captives are liable for an annual $1,000 registration fee. Captives also must pay the same premium taxes that are assessed on other insurers. That tax is just over 3 percent of premiums.