The Vermont Department of Financial Regulation has licensed 14 new captives so far this year.
The new entities include seven pure captives and three risk retention groups, as well as one special purpose financial captive, an industrial insured, a sponsored captive, and an association captive.
Five on the new captives have been redomesticated from other domiciles and three of them are in the healthcare sector.
Dave Provost, Vermont’s deputy commissioner of captive insurance, commented: “This strong start to the year is encouraging, considering there are more choices than ever to domicile your captive—I am glad that when companies evaluate their options that they choose Vermont.”
Vermont governor Peter Shumlin added: “Vermont has always sought companies of the highest standards. It does not surprise me that hospital and doctors’ groups are forming in Vermont in strong numbers.”
Healthcare continues to be one of Vermont’s most popular sectors. Currently, 96 hospital and doctors’ groups have captives in the state, making it the second largest sector for captives, trailing manufacturing with 100.
Another growth area are redomestications of captives from another domicile to Vermont. Dan Towle, director of financial services for Vermont, said: “We strongly encourage existing and new captives to perform proper due diligence when comparing domiciles. It would appear that companies are doing just that, as we are currently experiencing a very large amount of redomestications.”
Newly licensed captives have been formed in the healthcare, professional services, construction, manufacturing, non-profit, education, retail, trucking and insurance sectors. Vermont is home to more than 1,000 captive insurance companies.
