Nevada’s captive insurance programme has outperformed its growth and speed expectations by approving 26 captives in 2014, resulting in a captive premium increase of $3.8 billion.
The state’s insurance commissioner Scott Kipper said, following the results, that 2014 was once again a record breaking year for the Nevada captive insurance industry. Nevada now has 160 domestic captive insurers.
“As one of our nation’s oldest and largest captive domiciles, Nevada prides itself on its ability to maintain consistent and high regulatory standards, while also providing good service and a business friendly regulatory environment,” said Kipper.
Nevada now offers regulatory options for captive formations including series limited liability companies (LLCs) and segregated cell captive programmes.
“We saw a lot of companies choose to take advantage of Nevada’s efficient application approval and series LLC legislation,” said deputy commissioner Michael Lynch.
“After another record breaking year, it is obvious that business owners worldwide consider Nevada to be a leader as a captive domicile.”
Nevada has licensed more than 200 captive insurers since the inception of its captive insurance programme in 1999.
In recent years, the state has seen rapid growth in captive utilisation by a number of new segments including: bio-tech, alternative energy, multi-national transportation and manufacturing, as well as what the insurance division has called “significant growth” in captives for financial institutions.
Nevada continues to be a leader in the nation in formations of risk retention groups.
