Vermont celebrates 1,200th licensed captive insurance company

A Vermont captive assists a solid waste management authority in meeting its sustainability goals

Author: Vermont Captive

Montpelier, Vt. – Montpelier, VT – Governor Phil Scott announced today that the Department of
Financial Regulation (DFR) has licensed Vermont’s 1,200th captive insurance company. Sustainable
Assurance Company was granted a license as a pure Captive Insurance Company on January first. It was
formed by the Lancaster County Solid Waste Management Authority (LCSWMA). “As Vermont reaches another significant milestone for our Captive Insurance industry, we look forward to continuing to grow our reputation as a global leader in this sector and utilize our position to bring more Captives to Vermont,” said Governor Phil Scott.

“LCSWMA has become the first and only authority in Pennsylvania to establish a property insurance
captive company and this is something we are very proud of,” said Robert Zorbaugh, CEO, LCSWMA.
“The Authority has always prided itself on being a leader in waste management initiatives that utilize
waste as a resource to create a sustainable operating system. The formation of a captive continues that
tradition and will provide great long-term benefits for the Authority.” LCSWMA takes a unique,
comprehensive approach to waste management by utilizing waste to energy, landfill, transfer station
and household hazardous waste collection to responsibly minimize the environmental impact on the
communities they serve.

LCSWMA has a broad portfolio of innovative sustainability projects, some in partnership with the private
business sector. In 2018, LCSWMA integrated their Lancaster Waste to Energy (WTE) Facility with a
neighboring agricultural processing business which eliminated the need for them to use fossil fuels to
operate their facility. LCSWMA also utilizes a non-operational portion of their landfill for a commercial-
scale wind project. This public/private partnership provides electricity to a nearby dairy product
production facility. The turbines reduce the facility greenhouse gas emissions by roughly 5,900 tons
annually, the equivalent of removing 1,000 cars from the road.

With rising premium costs combined with a hardening underwriting market, LCSWMA was having
difficulty finding property coverage. “A captive is a great solution offering stability in pricing and allows
for greater control over the coverage itself,” said Daniel Youngs, CFO, LCSWMA. “We strive for our
facilities to operate at a gold standard for safety and maintain a best-in-class risk management program.
We had to think outside of the box and forming a captive was the best solution.”

LCSWMA worked with captive management company Artex Risk Solutions to start the preliminary
research into an appropriate domicile to form their captive in. “Along with our captive manager, Artex,
we came up with a short list and Vermont quickly rose to the top. Vermont has a rich history, proven
experience, and has a great reputation in the industry. We wanted to do it right and partner with the
best to make this happen. It was an easy decision for us.” added Zorbaugh.

“Vermont regulators are incredibly responsive to the pace and changing needs of the captive
companies, and in the reinsurance market this is a must,” said Steve McElhiney, SVP & Global Director of
Reinsurance for Artex. Steve was named to the Captive Review’s 2020 Power 50 list (#31), which is made
up of leaders of the captive industry.

“Vermont has worked with private and public sectors, small and large companies, and we had full
confidence in Vermont’s ability to regulate the authority to the highest standard,” said Mary
Desranleau, Senior Vice President — Captives, North America of Artex and head of office for Artex’s
South Burlington, Vermont location. “Vermont regulators will lead you in the right direction. The
teamwork environment cannot be understated.”

David Provost, Deputy Commissioner of Captive Insurance at DFR, commented on Vermont’s success.
“Vermont licenses captives for top-quality organizations for risk management and risk financing, and
regulates them in an appropriate manner, while recognizing the special purpose for which they were
created,” he said. “Building this industry has been a collaborative effort with state government and local
and international businesses and public entities like LCSWMA.”

Brittany Nevins, Captive Insurance Economic Development Director, reflected on the broad reach of the
captive industry. “The formation of a captive for a cutting-edge municipal waste management authority
such as LCSWMA shows how forming a captive can be an excellent solution to any long-term goal,
including reducing global greenhouse gas emissions. It also demonstrates the expertise of Vermont
regulators to be able to regulate a diverse range of captives with efficiency and quality.”

With Vermont in the middle of another legislative session, DFR Commissioner Michael Pieciak attributes
Vermont’s steady and innovative legislative history to today’s success. “The Vermont Legislature has
been a constant source of support over the last 40 years, regularly working with us to pass new captive
insurance bills that have helped keep Vermont at the forefront of the industry. It is the dedication to
meeting the needs of the industry, while improving the quality of regulation, that contributes to
Vermont’s reputation as the ‘Gold Standard’ and a model for other domiciles. We are proud of our rich
history and are thrilled to welcome LCSWMA to the Vermont captive family.”

For more information on Vermont’s captive insurance industry, visit, call Brittany Nevins at 802-398-5192 or email

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