Captives flock to Delaware in H1 2019
Delaware issued 56 captive insurance licenses in 2019, according to data released by state insurance commissioner Trinidad Navarro.
The captive industry was also revealed to have contributed $3 million to the state’s general fund and $1 million to the City of Wilmington.
This tax contribution reduced the tax burden for person in the state by $3.10, while residents of Wilmington saw their tax burden reduced by $17.22 per person, according to the state government. This means a family of four in Wilmington saved $68.88 per year because of this program, it said.
Since fiscal year 2014, captives have generated $20.7 million in surplus revenue for the state. A 2016 study conducted by University of Delaware found that the captive insurance program contributes $359 million annually to Delaware’s economy.
The state government will therefore be delighted to see Delaware’s captive population increase. Of the 56 licenses Delaware granted last year, 52 were issued conditionally, a form of licensing the state has offered since 2018 that allows certain captive owners to obtain a license on the same day as applying.
“Creating the conditional license has helped make Delaware one of the most attractive domiciles for captive insurance,” said Commissioner Navarro, “By bringing in these companies, we have been able to generate a substantial surplus revenue that reduces taxpayer burden and strengthens our economy.”
Navarro described Delaware’s captive regulatory regime as “firm but fair,” and praised his staff for finding “innovative ways to improve client experience.”
Delaware, Trinidad Navarro