Texas saw eight new captive formations last year, according to figures from the Texas Captive Insurance Association (TxCIA).
The figures, which were compiled by the TxCIA in collaboration with the Texas department of insurance, revealed that the total number of licensed captives in the Lone Star state was 38.
The level of growth in the captive market was down in comparison to 2016 when 14 new captives were licensed.
In June, state governor Greg Abbott signed a new captive bill into law which allowed captives to be formed as a reciprocal insurance exchange and take credit for reinsurance ceded to a non-affiliated reinsurer when specific requirements are met.
The legislative changes also meant captives in the state were able to insure life insurance benefits for employee benefits subject to the Employee Retirement Income Security Act and hold capital and surplus in the form of Texas county or municipal bonds.
There is currently one captive in the process of applying for a license in the state, for which TxCIA is about to start the qualifying examination.
