Advantage Insurance Holdings has capitalised its new subsidiary, Advantage Life USA (ALUSA), which will be domiciled and licensed in South Carolina.
Jay Branum, director of captives for the South Carolina Department of Insurance, added: "The recently enacted updates to South Carolina's captive insurance law have allowed companies like Advantage to expand their business here in South Carolina.”
ALUSA offers traditional private placement life insurance policies and deferred variable annuities to qualified purchasers.
In anticipation of the growth of ALUSA and its other life insurance businesses, Advantage has recently contributed over $30 million of new capital to Advantage Life & Annuity Company SPC, the parent company of ALUSA.
This new funding provides for both the required amount of regulatory capital for ALUSA to commence business as well as additional surplus for the benefit of all Advantage life insurance clients.
Advantage CEO Walter Keenan said, "We are very pleased to bring Advantage's substantial private placement life insurance capabilities directly to [US] market. South Carolina has proven to be the ideal location for ALUSA, thanks to its modern insurance regulation and business-friendly climate."
ALUSA is headquartered in Charleston and is led by Richard Kuriger and Simon Kilpatrick.
All of ALUSA's policies are fully reinsured by its direct parent, Advantage Life & Annuity Company SPC.
The subsidiary offers individual policy limits of up to $100 million face amount per insured life, with a full range of alternative investments available for use within policy structures.
At present, ALUSA policies may only be purchased by legal entities such as companies, partnerships and trusts established in South Carolina.
