Utah Welcomes 100th Captive: AFS Security Insurance

Utah Gov. Jon M. Huntsman Jr. has welcomed the state’s 100th captive insurance company, AFS Security Insurance Co. AFS is a self-insured entity of Associated Food Stores Inc., domiciled in
Utah.

Commissioner of Insurance D. Kent Michie, Deputy Commissioner Neal T. Gooch, Utah Captive Director Donnie Spann and his staff, as
well as service providers who have been instrumental in helping the state grow as a captive insurance domicile were on hand for the welcoming celebration in April.

In 2004, Utah had two captive companies, followed by 14 in 2005, 30 in 2006, and 92 in 2007. The Utah Captive Insurance Companies Act
was passed in 2003 with additional changes being made during the following years in both rules and statutes. A big boost was the abolishment of premium taxes in 2005. The 2008 legislature amended the Act to provide for the creation of a Special Purpose Financial
Captive Insurance Co. The amendment authorizes the organization and operation of a SPFC in Utah to facilitate risk securitization transactions and other risk financing structures.

Commissioner Michie noted that, “Comparing the growth of the five states who rank ahead of Utah in number of captives, Utah’s growth last year was nearly as many as the other five states put
together.”

In October 2006, the Utah Insurance Department hired Donnie Spann as the first full-time Captive Division director. He has taken proactive
steps to attract business to Utah by attending numerous conferences and speaking engagements.

Based on year 2007 financial statements, the Captive Insurance Division reports captive assets of $676 million and capital surplus of $86 million, with net written premiums for 92 captives totaling $244
million.

Source: Utah Insurance Division