Texas licensed four new captive insurance companies in 2018, but despite reduced growth in comparison to previous years, the outlook is “only positive”, according to Andrew Marson, director at Strategic Risk Solutions and Texas Captive Insurance Association board member.
Statistics from the Texas Department of Insurance (TDI) revealed that four new captives were licensed last year, a drop in growth in comparison to 2017 (eight new captives) and 2016 (13 new captives).
The TDI’s statistics also showed that no captives closed in 2018, in comparison to two closures in 2017 and three in 2016, meaning at 31 December 2018 there were 42 captive insurance companies in the state, all of which were pure captives.
Texas’ captive law only allows single parent captives and precludes companies from outside the state, or without a significant interest or operation in the state, from forming a captive.
Marson suggested this “solid law” has helped the domicile build “a solid foundation of locally owned captives, which is only going to be a great foundation for them to proceed”.
He added: “Last year was fairly quiet but I think that would jive with a lot of the other states as well.”
“I think the outlook is only positive and it is going to go from strength to strength.”
Subscribe for free to the next issue of Captive Insurance Times, published 20 February, to read the full Texas domicile profile.
