MONTPELIER - 2002 marked an all-time record with 70 new captives and a total of 597 licensed captives domiciled in Vermont, according to data released by the Vermont Banking, Insurance, Securities and Health Care Administration (BISHCA), breaking the previous record of 51 new licenses in 1987.

Fifty-five were pure captives, with ten Risk Retention Groups, three Sponsored, one Industrial Insured and one Association. Gross written premium in 2001 was $5.1 billion and is expected to top $7 billion in 2002.

'One of the most exciting aspects of 2002 and our success are the number of high quality companies that we are working with,' said Leonard Crouse, Vermont's Director of Captive Insurance. 'We're also seeing a number of dormant captives being re-activated. That's very much a part of the overall picture.'

Thirty-two captives were licensed in the fourth quarter, including Bank One, Applebee's International, Rubbermaid, Inc., Land O'Lakes and Pfaltzgraff Company.

Each quarter of 2002 set records and the pace continues to be very brisk. 'We have ten applications in the pipeline,' said Derick White, Assistant Director of Captive Insurance. '2003'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 regulation, world-class professional support services and accessible government officials is at the heart of our continuing success,' said Dan Towle, Vermont's Director of Financial Services. '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.'

One aspect of Vermont's captive growth is the trend towards onshore. 'I think it's fair to say that Vermont offers a measure of credibility that companies are actively seeking in a time when corporations are being scrutinized for their financial practices,' said Towle. 'My guess is all onshore domiciles are seeing more activity - and Vermont continues to be a solid choice and known quantity for over 20 years.'

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