Vermont licences up in 2007
–11 January 2008
Vermont’s licensed 32 new captive insurance companies in 2007, bringing to 823 the number of captives that have been licensed since 1981, according to data released Wednesday by the Vermont department of banking, insurance, securities and health care administration.
Of the 823 licensed captives, 527 continue to do business in the state, according to Peter Raymond, director of financial examinations for the Captive Insurance Division.
The state estimates captive insurance companies wrote an estimated $13 billion in premiums last year, netting the state roughly $13 million in premium taxes. The captive insurance industry is also responsible for 1,400 full and part-time jobs with an average annual salary of $52,000.
New captives licensed by the state in 2007 include Cephalon, Covidian, Ernst & Young, Wm. Wrigley Jr. Co. and Mount Kisco Medical Group, which became the 800th captive licensed in the state since 1981.
Raymond said that while the state licensed 32 new captives, 28 captives dissolved last year for a net gain of four companies. He said captives dissolve for any number of reasons and each year the state loses some companies.
He said there are 30 other states competing for the lucrative captive insurance market. “Most of the others have seen Vermont's success and have copied our statutes word for word,” he said.
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