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9 December 2016Accounting & tax analysis

EXCLUSIVE: Nevada highlights attractions for captives

Nevada is pushing itself forwards as a leading captive domicile in the US, according to Robert Gallegos, captive program officer for Nevada’s Division of Insurance.

Gallegos told Captive International that Nevada’s first domestic non-risk retention group (RRG) captive was authorised in 1999 and that its first domestic RRG was authorised in 2005.

“Nevada recognised captive insurance was, and continues to be, a growing alternative to traditional risk financing mechanisms and the formation and operation of Nevada domestic captive companies continues to present economic opportunities and benefits to the State and the insurance industry as a whole,” he said.

At the moment Nevada has 211 captives with active licenses, including 20 domestic RRGs.

Gallegos said that the Division of Insurance staff have captured the interest of potential captive formations by attending and participating in various captive association conferences and events across the US.

“Additionally, the Division’s website currently presents Nevada’s newest unique theme and current procedures that assist captive formation through the application process to obtain an insurance licence,” he said.

“Nevadans pride ourselves on being business-friendly and providing pro-business policies and tax structures that allow for the retention of more of the captive company’s profits. We offer a $5,000 tax credit against the first year premium tax, low application fees, simplified financial reporting, and dedicated professional service providers to help companies attain their captive insurance goals. Nevada also provides amenities for living, working, and holding annual meetings, and year-round recreation. Additionally, Nevada’s captive regulation is reasonable, thorough, and transparent.”

When asked what does the future hold for captives in Nevada Gallegos concluded that: “Nevada continues to be recognised nationally as one of the leading captive insurance domiciles. Nevada continues to show considerable growth in new captive formations, particularly for pure captive insurers.”