Vermont Captive Insurance

Vermont maintains a regulatory system that attracts quality business, promotes Vermont’s reputation in the industry, and safeguards the solvency of captive insurers while recognizing the special purpose for which they are created.

Vermont Captive Insurance  


Department of Financial Regulation, Captive Insurance Division
89 Main Street
Montpelier, VT 05620-3101
Website: www.vermontcaptive.com


Name of Captive Legislation
Title 8 Vermont Statutes Annotated, Chapters 141 and 142

Year Legislation Passed
1981 under Vermont’s Special Insurer Act

Recent Amendments
For legislative updates and other Vermont Captive news, please go to https://www.vermontcaptive.com/news-events/

Do you allow Cell Captives?
Yes. See 8 V.S.A. Chapter 141, Subchapter 2. Sponsored Captive Insurance Companies, Sections 6031 – 6039.

Total Number of Licenced Captives (31 Dec 2022)
1283 Total Licenses Issued; 608 Active Captives; 31 Dormant Captives

Number of Risk Retention Groups or Group Captives
88 Risk Retention Groups
13 Association Captives
20 Industrial Insured Captives

Number of Single Parent Captives
410 Pure Captives
38 Special Purpose Financial Insurers

Other
2 Affiliated Reinsurance Company
4 Agency
5 Branch

Number of Cell Captives
59 Sponsored Captives (over 500 cells and separate accounts)

Number of licenses granted in the past year (2022 calendar year)
41

Approximate (or Average) length of time to process a new captive 
30 days or less upon filing of a completed application for admission

Captive tax rates
Minimum: $7,500, maximum $200,000.  $5,000 tax credit for new captives in each of the first two years of licensure
Captives under common ownership and control may be consolidated for premium tax calculation.  Direct premium tax rates: 0.38% on the first $20 million; 0.285% on the next $20 million, 0.19% on the next $20 million, 0.072% thereafter.
Assumed premium tax rates: 0.214% on the first $20 million; 0.143% on the next $20 million, 0.048% on the next $20 million, 0.024% thereafter.

Minimum capitalisation rate 
Sponsored = $100,000
Pure or Branch = $250,000
Agency, Association or Industrial Insured = $500,000
Risk Retention Group = $1,000,000
Affiliated Reinsurance Company or Special Purpose Financial = $5,000,000
The Commissioner may prescribe additional capital.

Licencing fees 
Initial and annual license fee = $500 (all types except SPFIs); SPFIs = $5,000)
Actuarial application review fees = $6,000 (all types except SPFIs); SPFIs = $10,000

Industry sectors best represented in the domicile

  

12/31/2022

HEALTHCARE

 

111

MANUFACTURING

 

102

INSURANCE

 

80

CONSTRUCTION

 

46

REAL ESTATE

 

36

PROFESSIONAL SERVICE

 

31

RETAIL

 

30

TRANSPORTATION

 

30

EDUCATION

 

22

ENERGY

 

22

RELIGIOUS INSTITUTIONS

 

22

OTHER

 

18

NONPROFIT OR MUNICIPALITY

 

17

BANKING

 

15

AGRICULTURE

 

9

SECURITIES

 

9

COMMUNICATIONS

 

8

ENTERTAINMENT

 

8

TECHNOLOGY

 

8

FINANCING, LENDING, LEASING

 

7

WASTE MANAGEMENT

 

4

HOTELS

 

3

MEDIA

 

1

   

TOTAL CURRENTLY LICENSED

 

639

Top 5 uses for Captives in the domicile
Property
General Liability
Workers Compensation & Employers Liability
Professional Liability
Auto Liability and Auto Physical Damage

Total premiums received by the Captives (12/31/2021)
$30.1 billion

Total value of assets under management (12/31/2021)
$193.2 billion

Captive Insurance Managers registered to conduct business in the domicile (with number of licensed captives managed by each insurance manager) (as of December 31, 2022, includes active and dormant captives)

Advantage Insurance Management (USA) LLC

12

AIG Insurance Management Services, Inc.

35

Amethyst Captive Insurance Solutions

10

Aon Insurance Managers (USA) Inc.

164

Apetrop USA, Inc.

2

Artex Risk Solutions, Inc.

20

AVID Management Solutions LLC

0

Beecher Carlson Insurance Services LLC d/b/a Brown & Brown

14

Caitlin Morgan Captive Management,

11

Davies Captive Management

19

Global Insurance Management & Consulting, LLC

5

HUB International

1

Hylant Global Captive Solutions

9

Intuitive Captive Solutions LLC

1

KeyState Captive Management, LLC

9

Liberty Mutual Management (Vermont) LLC

1

Marsh Management Services Inc.

173

NFP Management (Vermont) Corp.

6

Premier Insurance Management Services

2

Risk Partners, Inc.

3

Risk Services-Vermont

14

Strategic Risk Solutions (Vermont), Ltd.

70

Willis Towers Watson Management (Vermont), Ltd.

51

Self/Parent managed captives

7

Brittany Nevins
Captive Insurance Economic Development Director
Department of Economic Development
State of Vermont
Brittany.nevins@vermont.gov
802-398-5192

Sandy Bigglestone
Deputy Commissioner, Captive Insurance
Department of Financial Regulation
State of Vermont
Sandy.bigglestone@vermont.gov
802-828-4854

Christine Brown
Director, Captive Insurance
Department of Financial Regulation
State of Vermont
David.provost@vermont.gov
802-863-3831