International Paper, Memphis-based global fibre-based packaging, pulp and paper products, has relocated its captive insurance company from Vermont to Tennessee.
The arrival of International Paper’s captive insurance company “is a milestone for Tennessee” as it represents the Volunteer State’s 700th risk-bearing captive insurance entity, according to the Tennessee Department of Commerce and Insurance (TDCI) captive insurance section.
Tennessee, which is currently ranked as the seventh-largest captive domicile in the US, has 211 standalone captives and 489 cell captives.
The state has written more than $6.4 billion in premium and collected over $16 million in taxes and fees.
TDCI revealed that the captive insurance sector has an estimated economic impact in Tennessee of $31 million in direct annual spending and employs more than 100 full-time professionals.
The relocation of International Paper was celebrated during a socially distanced event in Nashville.
The event was highlighted by a video message from Tennessee Governor Bill Lee and a presentation of a ceremonial license by TDCI captive insurance section director Belinda Fortman to David Arick, International Paper assistant treasurer, global risk management and board member of the Risk Management Society.
Fortman explained that the relocation is “the latest in a string of accomplishments for TDCI’s captive insurance section and proof that Tennessee has the right mix of leadership and regulation to attract globally recognised brands”.
Recently appointed TDCI commissioner Carter Lawrence, stated: “The creation of the 700th risk-bearing entity is an event that we proudly share with Governor Lee’s team and the entire state of Tennessee. Governor Lee’s leadership and continued focus on ensuring Tennessee is a top domicile for captive insurance companies has helped attract new captive insurance companies to Tennessee and make the Volunteer State a place where businesses want to start a captive insurance company or relocate their existing captive insurance company from other states and from countries around the world.”
Commenting on the relocation, Arick noted: “We have worked with the state for the past six years on our second captive and have a lot of confidence in the state as a fair and effective regulator. As a Memphis-based company, moving our captive to Tennessee will streamline administration and reduce operating costs.”
Tennessee Captive Insurance Association (TCIA) president Kevin Doherty explained the move is “very exciting news” for the state.
He stated: “The captive market is as strong as ever in Tennessee and TCIA looks forward to
many more captives being formed in Tennessee in the coming years.”
Fortman will be speaking more about Tennessee’s latest milestone as well as her strategy for the captive sector in the Volunteer State in issue 214 of Captive Insurance Times.
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