South Carolina welcomed 15 new captives in 2017, while removed nine from its registry, bringing the state to 169 in total.
This included nine new segregated portfolio companies, three pure captives, two risk retention groups, and one incorporated cell.
The nine companies deleted from South Carolina's portfolio included eight voluntary dissolutions and one merger, which the state's Captive Division said is in light of prevailing soft casualty market conditions.
“All things considered, 2017 was a good year for new captive formation in South Carolina”, says SCDOI Captive Director Jay Branum. “Our new versus dissolved numbers compare quite favourably with the numbers reported so far by other domiciles, including Vermont – 24 new versus 39 dissolved – and Utah – 60 new versus 106 dissolved. We’re still posting net gains to our portfolio as opposed to the net losses some other domiciles are experiencing.”
“We are pleased that we are more than holding our own in this domicile-congested onshore environment. The keys for us continue to be the quality of the programmes, and the commitment of the captive owners. I would rather have 15 solid programmes with committed owners for whom tax is a secondary concern than dozens of tax-driven micro-captives which in some cases bring in fewer premium tax dollars than the cost of licensing and regulating them.”
SCDOI Captive Administrator Jeff Kehler added, “It is no longer realistic for us to expect to license 20-30 new captives per year given the external forces at play these days – ie, the sustained soft market, the saturation of the large corporate sector, and the large number of US-based domiciles available to prospective captive owners. Against this backdrop, we’re pleased with how 2017 turned out for us, and very gratified at the growing recognition from the industry that in South Carolina, it’s all about quality.”
The list of new captives licensed in South Carolina includes: Dolphin Assurance Services Corporation; Property Trust Insurance Company IV; Property Trust Insurance Company V; Transportation Risk Retention Group, Inc; Tower Health Reciprocal RRG; Forestry Insurance Company of the SE, LLC; Shelmore Surety, LLC; East Main Insurance Company, Inc.; Chesapeake IX Insurance Company, IC; Mysis Insurance Company, Inc; Synergy Risk Group, Inc; Comporium Insurance, LLC; Boggs Insurance Company; Barony Insurance Company; Ace Assurance Company, Inc.
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South Carolina, 2017 Results, Captives, Domiciles, Jay Branum, Jeff Kehler, North America