Vermont captive insurers up by 32 in 2007

North America

The number of captive insurers licensed in the US state of Vermont passed the 800-licence mark last year, driven by growth in healthcare and securitised transactions. But captive growth in the state was slightly down on 2006, with 32 licences issued in 2007 against 37 granted in the previous year. Vermont is the largest captive insurance domicile in the US and second largest in the world in terms of gross written premium, with an estimated $13bn in 2007, according to the state’s Department of Banking, Insurance, Securities and Health Care Administration (BISHCA). The new captives formed in 2007 included 13 pure captives, eight special purpose financial captives (SPFC), six new risk retention groups, two association captives, two branch captives and one industrial insured captive, bringing the total number of licences issued in Vermont to 823. Commenting on last year’s activity, Leonard Crouse, Vermont’s Deputy Commissioner of Captive Insurance, said: “We continue to see a lot of quality captives with steady activity across all lines, especially in healthcare and in securitised transactions.” Among companies setting up captives in Vermont last year were Cephalon, Covidian, Ernst & Young, Wm Wrigley Jr Company, and Mount Kisco Medical Group, which became the 800th captive licensed in the state since 1981.