Q1 captive formation round-up

A look at some of the captives that were formed in several of the world’s leading domiciles in the first three months of the year.

Author: Vermont Captive

Captive formations in the first three months of this year have presented an interesting picture on the continued trend of where captive owners are choosing to set up their captives.

Based on data for 2022, Captive Review understands that Vermont has overtaken Bermuda as the world’s largest captive domicile, and the Q1 data suggests the US state has extended that lead this year.

Vermont approved 12 new captive formations in the first three months of the year, and at 31 March had 645 captives based there – an increase of six on their 2022 year-end total of 639.

By comparison, Bermuda approved just four new captive licences in the first three months of this year – three Class 1s (pure) and one Class 2 (group). The island finished 2022 with 633 captives according to the Bermuda Monetary Authority’s latest annual report put out this month.

The world’s third largest domicile, the Cayman Islands, fared better than its offshore rival according to the latest data revealed by Cayman International Insurance.

The Cayman Islands Monetary Authority approved eight new captive insurance companies and one new portfolio insurance company, the association stated, making there 673 international insurance companies at 31 March 2023.

Of these 673, 278 were pure captives, 128 group captives, and 153 segregated portfolio companies (SPCs), totalling 559 captives.

However, while these approval numbers appear strong they are cancelled out by the number of licence cancellation, as Cayman also finished 2022 with 559 captives, with 277 pure captives, 127 group captives and 155 SPCs.

US formations

Outside of the big three captive domiciles, data released for other US states shows there were a healthy number of other captive formations across the first three months of the year.

Utah, the fourth largest domicile by captive numbers, approved six new pure captives in Q1 along with two new cell captives.

In Hawaii, website data shows there were six new formations in Q1, with leading captive managers Aon, Marsh and Artex all responsible for the creation of new captives. All of these captives were pure captives.

In North Carolina, which reported the highest number of new captive formations anywhere in the world in 2022 at 62, website data suggests it approved at least another eight new captives in Q1 – six pure captives and two protected cell companies.

In Delaware, the regulator reported tat there were four new pure captives and two new series captives formed in Q1, all granted on conditional licences.

And in South Carolina, the regulator confirmed there had been three new licences approved in Q1.

To view the names of a selection of new captives that formed in Q1 2023, along with extra details such as the domicile, management company, licence date and type, see page 11 of the Captive Review May digital edition.

This article was originally authored by Mark Richardson and published by Captive Review on June 13, 2023. You can view the original article at https://captivereview.com/news/q1-captive-formation-round-up/.

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