Delaware Reports Another Record Year for Captive Growth

For Immediate Release | Contact: Jerry Grant | Phone: 302-674-7303

Delaware Reports Another Record Year for Captive Growth

 

The World’s Sixth Largest, and the Third Largest U.S. Domicile, Continues its Leadership Role

 

DOVER, DE (February 12, 2015) – Insurance Commissioner Karen Weldin Stewart announced today that the captive insurance bureau she formed shortly after taking office in 2009 continues to exceed expectations.  “I am very pleased that the captive program continues to grow.  This program provides economic opportunities for my constituents and much needed revenue for the state.”

 

The Commissioner’s captive bureau reported that in 2014 it licensed 87 captive insurers and 141 series business units.  Since inception, the captive program has licensed 385 captive insurers, 753 series business units, and 13 cells.  Today the program boasts 333 active captive insurers, 688 active series business units, and 12 active cells.

 

Commissioner Stewart added, “I am gratified by our continued success and I look forward to expanding our program even more in 2015.”

 

Captive insurance companies are owned by the entities that they insure, and are formed by businesses who wish to better manage the cost and administration of their own risk. Today Delaware is the world’s sixth largest and the country’s third largest captive domicile.  Delaware’s sophisticated corporate laws, financial infrastructure and respected judiciary make it the preeminent jurisdiction for business. These benefits are extended to captive insurance companies through Delaware’s Bureau of Captive and Financial Insurance Products.

 

To learn more about Delaware’s captive insurance bureau please visit http://captive.delawareinsurance.gov/

 

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Delaware’s Kinion Named One of the Top Three Influential Figures in Captive Insurance

Delaware’s Kinion Named One of the Top Three Influential Figures in Captive Insurance

Director of the Captive Insurance Bureau Recognized by Captive Review Magazine as One of “Power 50 in 2014”

DOVER, DE – Insurance Commissioner Karen Weldin Stewart is pleased to announce that Steve Kinion, Director of the Delaware Insurance Department’s Bureau of Captive and Financial Insurance Products, has been named number three on Captive Review magazine’s “Power 50 in 2014” list. Kinion moves up from 37th place last year on the list of persons of most influence in the world of captive insurance.

“Everyone in the Department is incredibly proud of Steve for making Delaware one of the international leaders in the captive industry,” said Commissioner Stewart. “It’s nice to know that people outside of our state recognize the tremendous work that Steve and his team do to create an environment in Delaware where businesses want to work and grow.”

Announcing this year’s rankings, Captive Review observes that “Kinion has increased his level of influence by making passionate and well-considered interventions around topical regulatory issues…Captive owners and other key stakeholders are reassured by Kinion’s drum beating for alternative risk transfer as he ensures the captive case is heard in full.” The complete story may be found on Captive Review’s website: http://www.captivereview.com/news/revealed-the-2014-captive-review-power-50/

Captive insurance companies, which are owned by the entities that they insure, are formed by businesses who wish to better manage the cost and administration of their own risk. In 2005, Delaware updated its laws regarding the formation of captives, thereby positioning the state to become a preferred domicile to the growing number of captive insurance companies being created by companies worldwide.  Today Delaware is the world’s sixth largest and the third largest U.S. captive domicile.  Delaware’s sophisticated corporate laws, financial infrastructure and respected judiciary make it the preeminent jurisdiction for business. These benefits are extended to captive insurance companies through Delaware’s Bureau of Captive and Financial Insurance Products.

For more information, please visit http://captive.delawareinsurance.gov/

 

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For more information please contact Jerry Grant at 302-674-7303

www.delawareinsurance.gov


Delaware Becomes Sixth Largest Captive Insurance Domicile

Insurance Commissioner Karen Weldin Stewart Announces Continued Growth In Delaware’s Captive Program

Dover, DE–Despite facing increased competition due to the growing number of captive insurance domiciles, Delaware grew its number of captive insurers in 2013. The year-end 2013 numbers are 298 licensed captives with 266 being active. As of year-end 2012, Delaware had licensed 212 captive insurers with 192 being active. Delaware experienced a 40 percent increase in licensed captives in 2013. Commissioner Stewart noted, “Delaware service providers, such as attorneys and accountants, are providing services to the captive industry at a greater rate than at any other time in the department’s history. This shows that the captive bureau is meeting, and even exceeding, its statutory mission of expanding economic development.”
According to Steve Kinion, director of the captive bureau, the growth resulted from industry’s recognition that Delaware is a premier captive domicile. Kinion stated, “In 2012 Delaware was the world’s 10th largest and 3rd largest U.S. domicile. While we remain the third largest U.S. domicile, our global reach and presence has significantly increased.” Commissioner Stewart added, “One of the attributes of domiciling in Delaware is that captive insurers can take advantage of Delaware’s premier entity laws. No other jurisdiction integrates business and corporate laws with alternative risk transfer like Delaware.”

Captive insurance companies, which are owned by the entities that they insure, are usually formed by businesses that wish to better manage the cost and administration of their insurance coverage. In 2005, the Delaware General Assembly passed House Bill 218, modernizing Delaware law regarding the formation of captives and positioning Delaware to become a home to the growing number of captive insurance companies being created by companies worldwide. Delaware’s sophisticated corporate laws, judiciary and financial infrastructure make it the preeminent jurisdiction for business. These benefits are extended to captive insurance companies through the Delaware Captive Insurance Program.

For more information about Delaware’s captive insurance program visit http://captive.delawareinsurance.gov/
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Delaware Department of Insurance: “Protecting Delawareans through regulation and education while providing oversight of the insurance industry to best serve the public.”


Commissioner Karen Weldin Stewart Proudly Announces Delaware As U.S. Onshore Captive Domicile of the Year

DoverCaptive Review magazine has named the winners of the 2013 U.S. Captive Service Awards and Delaware has been recognized as the winner in the category of U.S. onshore captive domicile of the year. Captive Review says, “Steve Kinion has led an experienced and approachable team in establishing Delaware as one of the U.S.’s most well regulated domiciles. Updating their laws every year, the domicile have worked hard to stay innovative and competitive and the judges felt that Delaware stepped up to the plate even more than Vermont this year, which came a close second.”

Captive insurance is a form of self-insurance where a business owner forms their own insurance company to insure their own risk. Since the owner is insuring himself, captive insurance is an incentive to avoid behaviors that lead to insurance losses. By reducing losses, the business owner can invest dollars formerly used to pay claims back into the business to create jobs. In terms of jobs and economic opportunity, the captive program has exceeded expectations. Commissioner Stewart is proud of the Delaware Captive Bureau and the captive team at the Department of Insurance led by Captive Director, Steve Kinion.

Stewart stated, “In addition to providing economic growth for many professional service firms in Delaware, the Captive insurance bureau has generated revenue for the state during this very difficult financial time.” Stewart added, “I am proud of my team and I believe that Steve and the entire captive bureau have done an excellent job. I am grateful for their hard work and the growth of the captive insurance industry which means jobs, revenue, and wealth – and that’s good for Delaware.”

In a separate ranking by Captive Review, The Delaware Department of Insurance’s Director of the Bureau of Captive and Financial Insurance, Steve Kinion, was also named as one of the Annual “Power 50”, a list that recognizes the captive industry’s most proactive, influential and innovative figures in 2013. Described as being a highly professional regulator with a pragmatic understanding of the need for proportional regulation; Kinion has been instrumental in driving the growth of Delaware as a captive domicile. Last year Delaware experienced the best year for captive licenses the state has seen since its adoption of captive regulation in 1984, and is currently ranked as the world’s 10th largest captive domicile and 3rd largest U.S. captive domicile.

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Contact: Marla Blunt-Carter
(302) 577-5259
Marla.Blunt-Carter@delaware.gov

Delaware Department of Insurance: “Protecting Delawareans through regulation and education while providing oversight of the insurance industry to best serve the public.”


Insurance Commissioner Stewart Announces That Delaware Captives Are On The Rise

Dover, DE–The Delaware Department of Insurance announces today that the final projection for the number of captive licenses the captive bureau anticipates issuing for 2012 and the projected premium tax revenue is on a rise. Steve Kinion, Captives Director for the Delaware Department of Insurance, presented the following data:

  • The 2012 additions are 59 captives, 1 cell, and 179 series units. The total number of licenses issued for risk bearing entities will be 212 captive companies, 12 protected cells, and 364 series business units. The total number of captive licenses issued will be 588. Not all of the licenses issued since the adoption of the captive law in 1984 remain active and over the course of time, Delaware has seen 22 captive companies dissolve or re-domesticate, one cell dissolve, and 6 series dissolve.
  • Active license numbers are 190 active companies, 11 protected cells, and 358 series business units. The total active captive entity count is 559.
  • In 2011 the Bureau added 58 captives, 3 protected cells, and 152 series. The total number of licensed risk bearing entities was 153 captive companies, 11 protected cells, and 185 series business units. The entity total for licenses issued was 349.
  • Even though the captive bureau added the $1,800 series unit application fee, and imposed more stringent regulatory standards in 2012, it was the best year ever for captive growth. The total entity growth rate from 2011 to 2012 is 68%.
  • The total captive company growth rate is 38.5%.

Delaware Captive Director, Steve Kinion, stated that “This level of growth is unprecedented in the captive insurance world. Considering that when Commissioner Stewart formed the captive bureau in July 2009 there were only 38 captive insurers, we have achieved a 558% growth rate in terms of licensing captive companies, and a 1,500% growth rate in total licensing of captive entities.”

This year’s growth may catapult Delaware over Hawaii into being the third largest U.S. captive domicile in terms of active captives behind Utah and Vermont. The forecasted premium tax revenue for 2012 is $1.5 million compared to the 2011 premium tax amount which was $1,232,823. The forecasted tax revenue increase from 2011 to 2012 is 21.6%.

Commissioner Stewart is elated with the performance of the Captive Bureau. Although captive insurers will pay their 2012 premium taxes on March 1, 2013 and the exact premium revenue will not be determined until late March or early April Commissioner Stewart believes that the Delaware Department of Insurance is moving in the right direction. Stewart expressed that, “Based on the numbers we already have, I am very pleased with the success we have experienced in our captive division. I believe that we will continue to see steady growth in captives and I credit my team at the Department of Insurance for their successful efforts in making Delaware more competitive in this global arena of insurance.”

For more information on Captive Insurance please contact our Bureau of Captive & Financial Insurance Products at (302) 577-5280 or visit our website at: www.delawareinsurance.gov.