US Captive


Accelerating growth


The US captive sector has had a strong year, as the engine of captive growth finds another gear.


Despite a difficult few years in the US economy, new captive formations continued unabated in 2010-2011, after only a slight dip in their fortunes during 2008-2009. It seems that captive insurance entities continue to prove their irrepressible utility to US and international business, and despite attentions from parents and troubled states looking to optimise their capital positions in the face of tough economic conditions, captive insurance entities continue to be a vibrant and growing part of the American insurance landscape.


Examining figures from the leading US domiciles, it is clear that 2010- 2011 was a remarkably good couple of years for the sector, with a raft of new formations in almost every state with an active captive insurance industry. Two-thirds of US states with captive legislation recorded new formations over the last year, a figure markedly up on the one-third that saw new captives formed back in the more troubled days of 2008. Those that did not record captive growth in 2010-2011 were, without exception, those states with relatively nascent captive sectors, with numbers of existing captives in the low single digits. For those with an already thriving captive sector, and for those looking to get into the top echelons of the US captive league table, 2010-2011 was by contrast a good year, with a significant number of formations across a host of US domiciles.


Among the major winners were those domiciles that grew the number of smaller 831b captive entities in their state jurisdiction, but it is clear that it was a good year for captive growth across the board,


Top five US domiciles by new captive formations Utah – 54 new captive formations


Delaware – 46 new captive formations Vermont – 33 new captive formations Kentucky – 25 new captive formations Montana – 25 new captive formations


Top five US domiciles by number of captives Vermont – 572 captives


Utah – 184 captives Hawaii – 168 captives


South Carolina – 160 captive entities Kentucky – 127 captive entities


US Captive . April 2011 11


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60