Forty-five new captive insurance companies were licensed this past year in Vermont, making 2021 Vermont’s fourth highest year of growth in its 40-year history.
Vermont is now home to 620 licensed captives, consisting of 589 active and 31 dormant captives..
Vermont’s 52 sponsored cell captives currently host nearly 500 cells and separate accounts, in addition to the licensed captive companies, according to the state.
The new captives were licensed in 17 different industries, the main industries being healthcare, real estate, manufacturing, insurance, and transportation. At least five of Vermont’s new captives in 2021 were formed by companies with international roots, —including Japan, Germany, Russia, the United Kingdom and Australia.
“Not only are new captives forming at a rapid rate, but fewer captives have been dissolving this year than we typically see,” said Brittany Nevins, the state’s captive insurance economic development director. Nevins said the state issued 45 new licenses, and only 14 captives were dissolved due to mergers, acquisitions, and other business reasons.
“This speaks to the strength of captive insurance as a long-term risk management tool and is something we expect to continue to see with the continuation of the hard insurance market,” she added.
Vermont has been experiencing growth in the number of new cells within sponsored captives, at a similar pace as new company licenses, with nine of the 45 new companies formed this year being sponsored cell companies.
“Vermont continues to see the growth in sponsored cell captives following consistent legislative updates over the recent years,” said David Provost, deputy commissioner of captive insurance. “Many companies are realizing the opportunity and flexibility the cell structure provides for their company.”
In 2021, Vermont celebrated its 40th anniversary in the captive industry. Vermont has licensed a total of 1,242 captive insurance companies since 1981 and remains the largest U.S. domicile for captive insurance and third largest in the world.
Topics Vermont
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