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Tennessee Captive Domicile Summary

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Tennessee, which is one of the oldest domestic captive domiciles, has, in recent years, become one of the fastest growing.

Over the last 5 years, the number of active captives in Tennessee has more than doubled, jumping from 68 in 2014 to 140 at the end of 2019.

Captive premium volume has increased even more. In 2019, premium volume topped $1.5 billion, a huge increase compared to 2015 when captives' premium volume was just under $670 million.

That growth, experts say, has been fueled by sweeping improvements state legislators have made to the statute.

Included in the first round of changes, enacted in 2011, were revisions to the 1978 law, which, among other things, set new captive minimum capital and surplus requirements, allowed captives to provide workers compensation coverage if certain conditions were met, as well as mandating that premium taxes paid by captives be used to help fund the state's captive regulation.

And positive legislative changes have continued. For example, in 2016, lawmakers approved a measure that gives a 1-year premium tax exemption for captives that redomesticate from non-US domiciles. Other changes include clarification that the assets of any individual cell captive cannot be seized as part of litigation against another cell.

The 2016 measure also gave most captives more time to file their annual reports.

 

Captive Domicile Statistics


Total Captive Count*
Tennessee
Year Captives
2019 140
2018 135
2017 139
2016 139
2015 117
*Includes active captives and excludes inactive and cell captives.

Captives' Gross Written Premiums
Tennessee
Year Premium Volume
2019 $1.5 billion 
2018 $1.2 billion
2017 $1.2 billion
2016 $1.0 billion
2015 $668.0 million

Captive Domicile Contacts


For more information, contact
Jennifer Stalvey
Director—Captive Section
Davy Crockett Tower, 10th Floor
500 James Robertson Parkway
Nashville, Tennessee 37243
Phone: (615) 770–0438
Email: [email protected]

Captive Events


The Tennessee Captive Insurance Association sponsors periodic events on captive issues as well as serves as a networking vehicle, while also sponsoring an annual meeting.

 "The industry is also constantly evolving so it is important that captive owners and service providers stay current with the latest developments," the TCIA says.

For more information, call (888) 668–3188.

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