Vermont Sees Major Growth Year in Captive Insurance Sector

Vermont recorded one of its top 3 years for captive insurance growth in 2025, licensing 51 new captive insurers and bringing its total to 707 active captives. This marks the 6th consecutive year Vermont has ranked among the top 10 growth years since its captive legislation was enacted in 1981.

The state also began 2026 with strong momentum, licensing four new captives in the opening weeks. The Vermont Department of Economic Development cited consistency, regulatory strength, and deep industry expertise as drivers behind the state's continued leadership in the global captive insurance market.

"Vermont's strength as a global captive domicile lies in its consistency, expertise, and forward-looking approach," said Lyle Jepson, commissioner of the Department of Economic Development.

Vermont was named International Domicile of the Year by Captive Review for the fourth year in a row, reaffirming its international stature. The recognition reflects the experience of the Department of Financial Regulation (DFR), its collaboration with the Department of Economic Development (DED), and the support of the Vermont Captive Insurance Association (VCIA).

"Our experienced regulatory team remains focused on regulatory clarity, innovation, and service. This continuity ensures that captive insurance companies can navigate change with confidence in an increasingly complex risk environment," said Kaj Samsom, commissioner of the DFR.

International ownership continued to be a hallmark of Vermont's captive sector, with around 90 internationally owned captives. New formations in 2025 spanned Europe, North America, and other major markets, signaling ongoing demand from multinational firms seeking reliable, well-regulated domiciles.

"Even as leadership evolves, our team's commitment to consistent oversight, responsiveness, and innovation remains unchanged. This consistency is a key factor in Vermont's continued position as a preferred domicile for companies across the globe," said Christine Brown, DFR acting deputy commissioner of captive insurance.

The new formations represented approximately 15 industries, including real estate, manufacturing, and health care. Structures included pure captives, sponsored captives, risk retention groups, and special purpose financial insurance companies. Sponsored captives added roughly 36 new cells in 2025.

"Captive insurance continues to offer a stable, long-term solution, and Vermont's experience positions us well to support companies as they adapt to these challenges," said Brittany Nevins, captive insurance economic development director at DED.

Workforce development and industry engagement remained key priorities. Programs like the Vermont Captive Insurance Emerging Leaders initiative, supported by VCIA and DED, helped attract and retain talent in the sector.

"As we look ahead, we remain focused on thoughtful growth and responsible innovation," said Ian Davis, president of VCIA. "Vermont's collaborative culture and depth of expertise will continue to serve the industry well in the years to come."