MONTPELIER - The first half of 2002 saw 26 new captives licensed in Vermont setting a record pace, according to the Department of Banking, Insurance and Health Care Administration (BISHCA). Since 1981, Vermont has averaged approximately 25 captives licensed annually.

After a best-ever first quarter with 15 new licensees, the pace continues for a record year. "Four Risk Retention Groups, including the Air Transport Association of America's Equitime captive to provide war risk liability coverage for the airline industry, and two sponsored captives, AIG and Banknorth Group, are making 2002 a very successful year," said Daniel Towle, Director of Financial Services.

"We have also licensed five captives relating to medical professional liability and are working with an increasing number of hospital physician groups," said Derick White, Assistant Director of Captive Insurance.

Vermont closed 2001 with 38 new captives - 37 pure and 1 sponsored - for a total of 527 at year-end. We're currently reviewing a double-digit number of new applicants," said Leonard Crouse, Vermont's Director of Captive Insurance. "The range and diversity of new licensees is exciting to see. We are in for a banner year," he added.

Companies forming new captives include Electronic Data Systems (EDS), Premera Blue Cross, Compass Bank and National Union Fire Insurance Company of Pittsburgh.

With premium volume exceeding $5 billion annually, Towle is not surprised at the heightened activity. "Even though there are more choices than ever, Vermont's stable regulatory environment, accessible government officials and world-class professional support services make us the premier onshore domicile of choice," said Towle. For additional information visit www.vermontcaptive.com.