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SRS Charts the Total Number of Active Captives for 2018

Bar Chart 480x377
February 25, 2019

Strategic Risk Solutions (SRS) compiled and presented charts on the total number of active captive insurance companies and cell captives at its recent webinar, titled "Captive Insurance Industry Review." The charts included captive counts, by captive domicile, for key US and international domiciles. 

For 2018, the number of active captives and cell captives for 20 key US domiciles was slightly down (- .8 percent), while the number of active captives and cell captives in 10 key international domiciles was marginally up (+2.7 percent), according to SRS.

SRS said captives taking the 831(b) tax election remained under the microscope in 2018 resulting in "a continued reduction in [their] numbers and a significant drop in formation activity." SRS also found that overall growth for captives insuring traditional property and casualty risk exposures was modest.

Meanwhile, rapid growth continued in 2018 for captives insuring medical stop loss and "strategic uses of captives also grew," according to SRS.

Total Captive Insurers Worldwide

SRS found that although captives faced difficult market conditions in 2018, the captive industry demonstrated resiliency. Per the table below, SRS shared information on recent worldwide captive growth according to data collected by Business Insurance. Based off of current data, SRS projected that the total number of captives worldwide will remain flat for 2018. 

Total Captives Worldwide 2018

Year

Number of Captives*

2005

4,881

2006

4,951

2007

5,119

2008

5,211

2009

5,525

2010

5,587

2011

5,831

2012

6,125

2013

6,420

2014

6,739

2015

6,851

2016

6,700

2017

6,647

2018

Expect flattening**

*Number of captives excludes cells and series.
**Pending final count from Business Insurance.

 
Total Active Captive Insurers for Key US and International Domiciles

SRS charted active captive insurance companies for key domiciles, including each domicile in which SRS is active. The numbers provided by domicile in the tables below are not a comprehensive analysis of global captives. However, SRS believes that this selection is representative of captive activity overall.

US Domicile Activity 2018 (20 Key Domiciles)*

 

Total

New

Closures

Change

Vermont

580

25

23

+2

Delaware

421

18

27

-9

Utah

388

35

61

-26

North Carolina

241

41

34

+7

Hawaii

231

8

7

+1

Nevada

185

3

21

-18

Montana

151

8

21

-13

South Carolina

144

8

6

+2

Tennessee

133

n/a

n/a

-13

Arizona

122

7

5

+2

DC

105

8

3

+5

Oklahoma

73

n/a

n/a

n/a

Missouri

71

10

4

+6

Kentucky

64

7

8

-1

Alabama

59

7

3

+4

Georgia

49

9

2

+7

Texas

42

4

0

+4

Michigan

24

2

1

+1

New Jersey

23

2

0

+2

Connecticut

17

1

0

+1

Total**

3,123

203

226

-36

*According to SRS, there are 30 US states with active captives managed in their states and there are over 35 US states with captive legislation.

**Number of captives excludes cells.

 

International Domicile Activity 2018 (10 Key Domiciles)

Offshore

 

Total

New

Closures

Change

Bermuda

711

19

47

-28

Cayman

703

33

26

+7

Barbados

276

11

1

+10

Europe

Guernsey

309

6

12

-6

Luxembourg

204

n/a

n/a

-4

Isle of Man

106

n/a

n/a

-2

Ireland

83

n/a

n/a

-2

Switzerland

27

n/a

n/a

+1

Malta

25

n/a

n/a

0

Gibraltar

10

n/a

n/a

-1

Total*

2,457

69

86

-16

*Number of captives excludes cells.


Total Number of Active Cell Captives for Key US and International Domiciles

For the same key domiciles indicated above, SRS also compiled numbers on cell captive activity for 2018. The number of cells decreased slightly in the United States (-0.1 percent) and increased more meaningfully in international domiciles (+9.4 percent). "The entrepreneurial use of captives led to growth in numbers especially among cells, [which] were promoted by their sponsors, as well as agency captives," SRS said. 

2018 Captive Industry ActivityCells In Key Domiciles (US and International)

 

Total Active

Change

Percent change

Cells International

1,358

+117

+9.4%

Cells US

1,865

-2

-0.1%

Total Entities*

3,223

+115

+9.3%

*Totals are not a comprehensive analysis of global cells.

 

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