International Paper, the Memphis-based global fiber-based packaging, pulp and paper company, has relocated its captive insurance company to Tennessee from Vermont.
The move is a milestone for Tennessee, becoming its 700th risk-bearing captive insurance entity. Tennessee now has 211 standalone captives and 489 cell captives.
Tennessee is currently ranked as the seventh largest captive domicile in the US and 12th largest domicile in the world.
The state’s captive insurance companies are regulated by the Tennessee Department of Commerce & Insurance (TDCI) which, along with International Paper, recently celebrated the relocation at a brief socially distanced event in Nashville. Tennessee Governor Bill Lee addressed the event via a video message, and TDCI captive insurance section director Belinda Fortman presented a ceremonial license to David Arick, International Paper’s assistant treasurer, global risk management.
Governor Lee said: “I commend International Paper for choosing to relocate their captive insurance company to Tennessee and reaffirming their commitment to their global headquarters’ home state.”
Arick said: “We have worked with [Tennessee] for the past six years on our second captive and have a lot of confidence in the state as a fair and effective regulator. As a Memphis-based company, moving our captive to Tennessee will streamline administration and reduce operating costs.”
TDCI Commissioner Carter Lawrence said: “Governor Lee’s leadership and continued focus on ensuring Tennessee is a top domicile for captive insurance companies has helped attract new captive insurance companies to Tennessee and make the Volunteer State a place where businesses want to start a captive insurance company or relocate their existing captive insurance company from other states and from countries around the world.”
Tennessee captives have written over $6.4 billion in premium and collected over $16 million in taxes and fees. The captive insurance sector has an estimated economic impact in Tennessee of $31 million in direct annual spending and employs more than 100 full-time professionals.
TDCI captive insurance section director Belinda Fortman said: “International Paper’s relocation of its captive insurance company is the latest in a string of accomplishments for TDCI’s captive insurance section, and proof that Tennessee has the right mix of leadership and regulation to attract globally recognised brands.”
International Paper, Tennessee Department of Commerce & Insurance, Belinda Fortman, Governor Bill Lee, David Arick, Carter Lawrence