VERMONT’S 2009 CAPTIVE GROWTH STRONG DESPITE WEAK ECONOMY
MONTPELIER – The State of Vermont licensed 39 new captive insurance companies in 2009 as it approaches the 900-license milestone, according to data released by the Vermont Department of Banking, Insurance, Securities and Health Care Administration (BISHCA).
“A strong and growing captive industry is good for our economy,” Governor Douglas said. “That this industry is growing in Vermont, even during this difficult time for our economy, is a testament to the hard work of our economic development officials and the professionals at BISHCA. It also demonstrates our state’s economic potential when we put in place policies that make us competitive in an industry or sector.”
Despite challenging economic conditions, Vermont licensed its 6th highest tally of captives in its 29 year history. “In today’s market some companies are finding it more advantageous to find ways to save a dollar, rather than it is to earn a dollar, and a captive can provide a mechanism to do that,” said Dan Towle, Vermont’s Director of Financial Services.
The new captives formed include 28 pure captives, 5 new risk retention groups, 4 special purpose financial captives (SPFC), 1 sponsored captive and 1 industrial insured captive, bringing the total number of licenses issued in Vermont to 878.
“2009 was a very good year for captive growth,” said David Provost, Vermont’s Deputy Commissioner of Captive Insurance. “We continue to see a lot of quality captives with steady activity across all lines, especially in healthcare, financial services and construction. I am optimistic that 2010 will be another good year for captives in Vermont.”
Some of the companies in the class of 2009 include: Comcast, Morgan Stanley, Swiss Re, the Empire State Building, Peabody Energy, Planned Parenthood and Turner Construction. Captive Insurance Companies formed by the healthcare industry continues to be one of Vermont’s fastest growing sectors. New healthcare captives in the class of 2009 include: Centra Health, Carilion Clinic, Saint Mary’s Hospital & Medical Center, Crystal Run Health Care, ENT & Allergy Associates and the Children’s Mercy Hospital. “Interest in captives for the healthcare industry remains strong and we expect to see more growth in this sector,” said Towle.
“Vermont will continue to take steps to maintain its reputation as the gold standard of domiciles,” said Governor Jim Douglas. “While many of our domestic competitors have reduced their commitment to promoting and regulating captives, Vermont is continuing to invest in this valuable sector of our economy,” Douglas said.
Vermont is the largest captive insurance domicile in the U.S. and the third largest in the world, with an excess of $16 billion in gross written premium estimated for 2009. Vermont is also home to 42 of the companies that make up the Fortune 100, and 18 of the companies that make up the Dow 30 have Vermont captives.