MONTPELIER - 2001 will go down as another banner year with 38 new captives licensed in Vermont, according to Vermont's Department of Banking, Insurance, Securities and Health Care Administration. 'Vermont will continue to lead the industry as the premier onshore domicile,' said Governor Howard Dean, M.D. in making the announcement. 'Despite more domicile choices than ever, Vermont's stable regulatory environment, accessible government officials, and world-class professional support services make us the right choice for growing numbers of companies.'

In a year that saw Vermont license its 500th captive in its twentieth year as a domicile, Vermont will close 2001 with 38 new captives - 37 pure captives and 1 sponsored captive - for a total to date of 527. 'There is strong activity for first quarter 2002,' said Leonard Crouse, Vermonts Director of Captive Insurance. 'We have been extremely busy meeting with some very quality companies and we continue to see an even greater level of interest than in previous years.'

With premium volume now approaching $5 billion, new captives include the nation's leading mining equipment manufacturer, a leading drug manufacturer and four hospital groups. New licenses were issued to some other well known companies: the Pepsi Bottling Group, the Kroger Co., A.G. Edwards, Inc., Goldman Sachs Group, American Century Companies, Gannett Co., Wendy's International, and Rotary International.

Vermont's Director of Financial Services Daniel Towle said he is not surprised at the current rate of growth for new captive formations. 'Our consistent approach to licensing and regulating high quality companies has built us a reputation that continues to be a very attractive reason to choose Vermont,' he said. Towle can be reached at 802-828-5232 or email dan@thinkvermont.com. Additional information may be found at www.VermontCaptive.com.