The New Jersey Department of Banking and Insurance (NJDOBI) has approved Lumerica Insurance Company—a subsidiary of BASF Americas Corporation—to operate as a captive insurer in the US state.
Lumerica Insurance’s principal business is to insure BASF’s North American property and excess liability exposures. The company was originally domiciled in Vermont in 2005.
Robert Smith, vice president of tax, insurance and real estate in North America at BASF, said: “[Our company] appreciates the help and cooperation of the NJDOBI in our efforts to move Lumerica to New Jersey.”
Last year, NJDOBI hosted a captive insurance summit to encourage potential insurers to domicile in New Jersey.
The summit helped companies to become more familiar with the state’s regulations and application process and brought captive industry experts together to discuss emerging trends and issues.
New Jersey's governor, Chris Christie, signed the Captive Insurers Act, which allows for the formation of captive insurance companies in the state, into law in February 2011.
Since the law took effect, NJDOBI has approved the formation of eight captives, with more in the pipeline.
Ken Kobylowski, commissioner of NJDOBI, said: “The Christie administration continues to grow a competitive captive insurance marketplace. I am very pleased that a company of BASF’s calibre has chosen to redomesticate an important part of its insurance services operation to our state.”
“Our growing captive industry is already represented by firms providing services to the shipping, communicaions and healthcare industries.”
