International Paper Relocates Captive to Tennessee from Vermont
December 18, 2020
Corporate giant International Paper Co. has moved its captive insurance company to Tennessee from Vermont to become, including cell captives, Tennessee's 700th captive insurance company.
"As a Memphis-based company, moving our captive to Tennessee will streamline administration and reduce operating costs," Davis Arick, International Paper's assistant treasurer, Global Risk Management, said as part of a broad December 17, 2020, news release held by the Tennessee Department of Commerce and Insurance (TDCI) in Nashville addressing the move of International Paper's captive.
The relocation of International Paper's captive insurance company to Tennessee was applauded by the state's governor.
"I commend International Paper for choosing to relocate their captive insurance company to Tennessee and reaffirming their commitment to their global headquarters' home state," Tennessee Gov. Bill Lee said.
Tennessee captive regulators also welcomed International Paper's captive, citing the move as an example of the appeal of the state as a captive insurance domicile.
"International Paper's relocation of its captive insurance company is the latest in a string of accomplishments for TDCI's Captive Insurance Section and proof that Tennessee has the right mix of leadership and regulation to attract globally recognized brands," Belinda Fortman, Captive Insurance Section director at the Tennessee Department of Commerce and Insurance, said.
The top executive at the Tennessee Captive Insurance Association (TCIA) said that the redomestication of International Paper's captive illustrates the strength of Tennessee as a domicile. "The captive market is as strong as ever in Tennessee and TCIA looks forward to many more captives being formed in Tennessee in the coming years," said TCIA President Kevin Doherty.
Tennessee, whose captive insurance statute was passed in 1978, is one of the oldest domestic captive domiciles. In recent years, the state's captive growth has been significant. For example, last year, Tennessee's captive premium volume topped $1.5 billion, a significant increase from 2015 when Tennessee's captive premium volume was just under $670 million.
December 18, 2020