Delaware’s captive growth in 2012 could see the state overtake Hawaii in becoming the third largest US domicile in terms of active captives, behind Utah and Vermont.
The 2012 additions include 59 captives, one cell, and 179 series units. The total number of licenses issued for risk bearing entities will be 212 captive companies, 12 protected cells, and 364 series business units, with the total number of captive licenses issued reaching 588.
Active license numbers are 190 active companies, 11 protected cells, and 358 series business units. The total active captive entity count is 559.
The record figures come despite the captive bureau adding a $1800 series unit application fee and imposing more stringent regulatory standards in 2012. The total entity growth rate from 2011 to 2012 is 68%.
Steve Kinion, Delaware captive director, said: “This level of growth is unprecedented in the captive insurance world. Considering that when Commissioner Stewart formed the captive bureau in July 2009 there were only 38 captive insurers, we have achieved a 558% growth rate in terms of licensing captive companies, and a 1,500% growth rate in total licensing of captive entities.”
Karen Weldin Stewart, the Delaware Insurance Commissioner, said she is elated with the performance of the captive bureau.
“Based on the numbers we already have, I am very pleased with the success we have experienced in our captive division. I believe that we will continue to see steady growth in captives and I credit my team at the Department of Insurance for their successful efforts in making Delaware more competitive in this global arena of insurance.”
