Monday, August 16, 2010
The State of Vermont has issued its 900th captive insurance company license to Lincoln Financial Group, according to the Vermont Department of Banking, Insurance, Securities and Health Care Administration (BISHCA).
Vermont’s 900th license means the state has issued more than four times as many captive licenses as its next closest domestic competitor.
“This benchmark gives Vermonters a strong sense of pride and achievement that our commitment to this industry for nearly 30 years has been heard loud and clear,” said Governor Jim Douglas. “Vermont will continue to offer a stable regulatory environment, governmental officials that are accessible, and world-class professional support services.”
Lincoln Financial, based in Randor, Pennsylvania, is the 22nd new captive insurance company licensed this year in Vermont in what has been a very active year for new formations. In 2009, Vermont licensed 39 new captives, its 6th best year in its 29-year history.
“While reports show limited activity in the captive sector, Vermont is bucking the trend with a strong first half of the year and it is very encouraging that interest continues to be robust,” said Dan Towle, Vermont’s Director of Financial Services for the Vermont Agency of Commerce & Community Development. “We’re going to continue our efforts to grow Vermont’s captive industry and maintain our lead as the ‘Gold Standard’ of captive domiciles.”
Special purpose financial captives (SPFC) formed in the State of Vermont for the securitization of insurance reserves has been a strong growth sector for the Green Mountain State. Vermont currently has more than 20 SPFC’s that wrote more than USD6bn in gross written premium last year.
Vermont is the largest captive insurance domicile in the US and the third largest in the world. Forty-two of the companies that make up the Fortune 100 and 18 of the companies that make up the Dow 30 have Vermont captives.