The State of Vermont licensed 26 new captive insurance companies in 2016, eight of which were captives formed by healthcare companies, which now represents Vermont’s largest industry sector with 101 captives.
The new captives were comprised of 15 pure captives, five risk retention groups (RRGs), three special purpose financial insurers, and one sponsored captive, one industrial captive, and one association captive, according to the Vermont Department of Financial Regulation.
Vermont’s overall total licenses is now 1088, with 584 active captive insurance companies. One additional license has already been recorded in 2017.
The captives were licensed in healthcare, manufacturing, insurance, retail, real estate, construction, financing, lending, leasing among others.
Furthermore, two captives were redomesticated from the Cayman Islands and one from Washington, DC.
“It’s great to see another strong year of growth for captive insurance in Vermont,” said Vermont Governor Phil Scott.
“This industry has continued to be an important contributor to our economy, and its 2016 growth - particularly in the healthcare sector - along with the national and international awards Vermont has received, reinforces our ‘Gold Standard’ reputation in this sector.”
Against a backdrop of a prolonged soft market and added completion by other US states and offshore domiciles, the Vermont’s captive industry is pleased with this growth.
Dan Towle, director of financial services for Vermont, added: “The continued formation of hospitals and doctors’ groups forming Vermont captives has been a very positive trend that we expect to continue.”
David Provost, Vermont’s deputy commissioner of captive insurance, commented: “The quality of Vermont’s 2016 licensees was outstanding.
“Vermont’s focus will always be licensing quality companies and regulating them in an appropriate manner commensurate with their risk.”
Furthermore, five new RRGs were licensed in Vermont in 2016, bringing the active total to 93.
Sandy Bigglestone, Vermont’s director of captive insurance, said: “We employ our own examiners which keeps exam costs reasonable for captives and RRGs.
“The expertise of our staff when it comes to analysis and examinations is a significant part of what makes Vermont so attractive.”
Notable captives in the class of 2016 include: Tempur Sealy International, Domino’s Pizza Franchisees, Swiss Re Life & Health America, West Marine, National Life, United States Hang Gliding and Paragliding Association and The Brady Corporation. It also includes the Dutch company, Bechtel Corporation.
The newly licensed captives in the healthcare sector include City MD Group and Affiliated Urgent Care Centers, Prospect Penn, Evolent Healthcare, Assisted Living and Personal Care Homes, Accountable Health Partners, The University of Toledo Physicians Clinical Faculty, Gravie and Deaconess Health System.
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Vermont, Phil Scott, Dan Towle, David Provost, Sandy Bigglestone, Captives, North America