The Alabama Department of Insurance has revealed that nine captives, one protected cell company and one risk retention group (RRG) were formed in the state last year.
The ‘2017 Alabama Captive Key Statistics’ also showed that last year five protected cells were created and four captives surrendered their licenses.
According to the statistics, as of 31 December 2017 there were a total of 70 risk bearing entities domiciled in the state, of which 50 were captives and 20 were protected cells.
Though a slight downgrade on the record-breaking figures from 2016, when 11 captives, two protected cell captives (PCC) and one risk retention group were formed, the domicile continued its positive growth and licensed its 50th captive.
Several of the features contained in the 2016 revision of the Alabama Captive Act, which was an effort to make the state a more competitive captive domicile, continued to be heavily utilised.
The 60-day provisional captive license was utilised by 15 captives and protected cells.
One new protected cell captive was created using the modernised Alabama PCC statute, and one RRG was formed using the state’s new RRG statute.
According to Norman Chandler, Alabama Captive Association president, the state’s captive market continues to reap the benefits of the new legislations.
Chandler said: “It is exciting that the support given the captive industry by the legislature and the governor in Alabama has paid off. In addition to strong interest captive and protected cell formation, RRG interest continues.”
He added: “Given the challenges in the broader captive market in 2017, we were pleased that Alabama nearly matched its captive formation record from the year before.”
