Delaware Department of Insurance commissioner Karen Weldin Stewart has transferred $250,000 in excess captive revenue to the city of Wilmington.
The department’s captive bureau, which was formed in 2009, has seen Delaware experience an 800 percent growth rate in the number of licensed captive insurance entities.
The bureau generated more than $1.2 million in tax revenue in 2011, which is more than double what it generated in its first year of existence.
Under state law, the Delaware Department of Insurance’s commissioner is able to transfer excess revenue that the captive insurance bureau has earned from licensing and administering captives to the city of Wilmington through the secretary of state.
Its revenue for 2012 has already exceeded its projected operating costs and the excess amount has been transferred to the Secretary of State and directed to the city of Wilmington.
Stewart said: “In 2009 when I started the captive bureau, we had 38 captive insurers. At the end of 2011 there were 338 captive risk bearing entities that generated nearly $1 billion of insurance premium. I attribute this growth to innovative designs in alternative risk transfer that maximise the power of the Delaware’s corporate and business entity laws.”