The Alabama Department of Insurance has revealed that 11 captives, two protected cell captives and one risk retention group were formed last year.
As of 17 January, the total number of risk-bearing entities domiciled in Alabama totalled 62. Last year, the state saw seven captives surrender, three due to redomestications.
According to Arsenal Insurance Management, 2016 marked “a new high point” in captive and protected cell creation in Alabama.
In July last year, the Alabama governor Robert Bentley signed an updated and modernised captive bill into law in an effort to make Alabama more competitive in the formation of captives.
The changes included modernising the language and capital requirements for protected cell captives, allowing captives to form as series limited liability companies and mutuals, and introducing a 60-day provisional licence.
Norman Chandler, president of the Alabama Captive Insurance Association, said: “We noticed strong interest in the updates to the captive law made in 2016 and it is no surprise that Alabama had strong captive and protected cell formation. It is exciting that the support given to the captive industry by the legislature and the governor in Alabama has paid off.”