Louisiana Department of Insurance
Louisiana enacted its captive insurance statute in 2008, with the law taking effect in 2009. Despite being an early adopter, the state has remained a small domicile. As of 2023, it had just three licensed captive insurance companies, generating $424.1 million in gross written premiums.
While Louisiana has not seen significant growth in captive formations, regulators have expressed a willingness to work with qualified 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 2025, the state passed Act 313, renaming its captive statute as the CHOICES Act and introducing updated definitions, expanded entity types, and revised financial requirements.
Minimum capital and surplus requirements under the law include the following.
- $250,000 for pure (single-parent) captives and branch captives
- $500,000 for association captives
- $1 million for risk retention groups
Captive boards must meet annually in Louisiana (quarterly for association captives), and companies must designate a registered agent and maintain a principal place of business in the state. Prior approval from the insurance commissioner is required for dividend payments from capital and surplus.
Act 313 also replaced the state's prior premium tax structure with a captive-specific system. Captives are taxed at 0.15 percent on direct premiums, with a $7,500 minimum and $200,000 maximum annual tax. Return premiums are deductible.
