Capstone Associated Services has been approved as a captive manager by the Texas Department of Insurance.
Texas is the eighth domicile in which Capstone has been licensed as a captive manager.
It follows the state’s moves to become friendlier to captive insurance business, particularly by allowing captive insurers to pool their risk with other captives for the first time in 2015.
Stewart Feldman, CEO and general counsel for Capstone, commented: “With the recent favourable state legislative changes, the captive insurance landscape in Texas is changing. Texas is now advancing as an acceptable domicile for the mid-market.”
“Texas has not traditionally been a recognised captive domicile. Only in 2013 did Texas enact any captive legislation. As a result, Texas has a mere 29 licensed captives, with most captives affiliated with large companies, like AT&T.”
Texas began allowing captives to pool risk last year while letting them gain credit for reinsurance to an affiliate. Its original pure captive legislation was passed in 2013.
Feldman added: "With its new enabling legislation recently extending to mid-market clients, Texas can now offer a credible alternative to more traditional domestic jurisdictions.”
