MONTPELIER -- The year 2003 closed with another all-time record of 77 new captives licensed, eclipsing last year's record of 70 bringing Vermont's total of licensed captives domiciled in Vermont to 674, according to data released by the Vermont Banking, Insurance, Securities and Health Care Administration (BISHCA).

The new captives represent every form available in Vermont with the majority being pure captives. Nineteen new risk retention groups were formed, with industrial insureds, sponsored, and association captives rounding out the new 2003 licensees. Gross written premium in 2003 is expected to be $8.5 billion, up from $7 billion in 2002.

'The fourth quarter was especially busy,' said Leonard Crouse, Vermont's Deputy Commissioner of Captive Insurance. 'We licensed 20 captives in the last three months of the year.' Two captives were redomesticated from another state, and a pure captive converted to a risk retention group in 2003.

Parent companies of the licensed captives came from hospitals, manufacturing sectors, financial services, religious organizations, hotels, sports teams, construction, airlines and fast food. 'We have several applications in the pipeline,' said Derick White, Director of Captive Insurance. '2004's pace is not slowing down one bit.'

Interest in Vermont as a domicile was very high on several recent recruitment trips, including the World Captive Forum in Florida and the National Workers' Compensation and Disability Conference in Chicago. 'Vermont's solid reputation for consistent and knowledgeable regulation, world-class professional support services and accessible government officials is at the heart of our continuing success,' said Governor Jim Douglas. 'We will continue to make sure that we keep pace with the changing needs of the industry and will do whatever it takes to retain our leadership position.'

The growth of the overall industry is a clear indication of the value captive insurance offers. 'It is fair to ask whether we can call this industry the alternative risk market anymore,' said Dan Towle, Vermont's Director of Financial Services. 'It may well be becoming the mainstream choice for risk managers,'

For more information on Vermont's captive industry, visit www.VermontCaptive.com or call Dan Towle at 802-828-5232 or email dan@thinkvermont.com .