DOVER, DE — Delaware Insurance Commissioner Karen Weldin Stewart has issued a bulletin which provides guidance to make it easier for captive insurers to comply with the new requirements within the federal Protecting Americans from Tax Hikes (PATH) Act.  Captive Insurance Bulletin No. 6 establishes procedures so that owners of captive insurance companies may satisfy the PATH Act’s new mandates for owning captives.

For tax years after December 31, 2016, the PATH Act will increase the annual premium to $2.2 million that an insurer making the Internal Revenue Code section 831(b) election may receive.  The PATH Act also creates two new provisions affecting these insurers.  The first is how much premium an insurer may derive from a single person and the second is new ownership requirements for these insurers.  Bulletin No. 6 establishes two cost efficient procedures that captive insurance company owners may follow that either change the ownership of an existing captive, or allow for the creation of a new captive.

“I am very proud that my captive insurance staff has established guidance that responds to a change in federal tax laws,” said Stewart. “Delaware’s captive insurance program is known throughout the world as an advocate for the captive insurance industry.  Bulletin No. 6 once again affirms Delaware’s position by offering a timely and efficient regulatory option for captive insurance companies.”

The full text of Captive Insurance Bulletin No. 6 can be found at http://www.delawareinsurance.gov/departments/documents/bulletins/CaptiveInsuranceBulletinNo6.pdf.

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UD Report: Captive Insurance Program Boosts Delaware’s GDP, Jobs, Incomes, Tax Revenue

Commissioner Stewart Celebrates Captive Bureau’s Economic Impact

DOVER, DE –Insurance Commissioner Karen Weldin Stewart today announced the release of a University of Delaware economic impact study which shows that the Department of Insurance’s captive insurance program contributes nearly $360 million to Delaware’s annual gross domestic product. The captive program also directly and indirectly supports 2,537 Delaware jobs, creates almost $109 million in additional income, and generates over $5 million for the state in tax revenue, the report shows.

The study, The Economic Contributions of the Captive Insurance Industry to the Delaware Economy, was conducted on behalf of the DOI by the University of Delaware’s Alfred Lerner College of Business & Economics’ Center for Applied Business & Economic Research (CABER), which has produced similar economic impact studies for the Firefly Music Festival and Delaware’s horseracing industry.

CABER surveyed 1081captive insurance companies doing business in Delaware and used data from businesses providing services to those companies. The report breaks out the program’s economic impact per $1,000 spent by the DOI for the captive industry. For every $1,000 spent, 1.95 jobs are created, $83,574 in income is generated, and $4,301 in taxes are collected. Captive program spending supports 950 jobs in finance and investment industry, 447 jobs in legal, accounting and professional support, and 209 retail jobs. The complete report may be found at http://captive.delawareinsurance.gov/docs/pdfs/captive-industry-impact-on-de-econ-caber-report-201608.pdf

“I instituted the Bureau of Captive and Financial Insurance Products in 2009 and I’ve watched it grow ever since,” said Commissioner Stewart. “Thanks to my captive director, Steve Kinion, and my topnotch captive staff, we are consistently one of the top captive domiciles in the US and in the world. But until now, I don’t think many people were aware of exactly what we contribute to Delaware’s economy. The CABER report rewards my faith in captives as a revenue generator for our state.”

Captive insurance entities are owned by the companies that they insure, and are generally formed by businesses who wish to better manage the cost and administration of their insurance coverage. DOI’s captive bureau is self-sustaining and currently contributes an annual surplus in tax and fee revenue of over $3 million to the Delaware general fund.

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For more information please contact Jerry Grant at 302-577-5259
captive.delawareinsurance.gov
www.delawareinsurance.gov

DOVER, DE – Influential trade publication Captive Review magazine has named Insurance Commissioner Karen Weldin Stewart to its first Enterprise Risk Captive Pioneers list, recognizing 20 of the “key influencers” in the United States’ smaller captive industry.

Captive Review said “Commissioner Stewart has been the driving force behind Delaware’s rapidly growing captive industry and has taken a strong interest in the facilitation of captives for small and medium-sized businesses.” These captive entities, known as Enterprise Risk Captives (ERCs), have played a significant role in Delaware’s captive growth. In July 2009, when Commissioner formed the Bureau of Captive and Financial Insurance Products, Delaware only had 38 captive insurers. In a little more than five years, Delaware became one of world’s preeminent captive insurance domiciles, in large part by providing ERCs a captive insurance domicile that has knowledgeable regulators and laws that encourage the formation of captive insurers.

“I’m honored to be included on this list of small captive insurance industry trailblazers,” said Commissioner Stewart. “When I first became Commissioner, I was determined to grow our captive program. Of course, my hard-working captive division staff has really gotten down in the trenches and worked with our ERCs to make sure they make use of all the advantages Delaware’s favorable business climate provides. And my captive director Steve Kinion especially has become a respected champion for small market captives.”

Captive insurance companies are owned by the entities they insure, and are formed by businesses who wish to manage more efficiently the cost and administration of their own risk. Delaware updated its laws regarding the formation of captives in 2005, and consequently became a preferred domicile for 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

For more information, please visit captive.delawareinsurance.gov

The Captive Review article is here: captivereview.com/news/revealed-the-2015-captive-review-erc-pioneers

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Governor Markell Recognizes DOI’s Licensing of 1000^th Captive Insurance Company

Commissioner Karen Weldin Stewart Achieves a Long-Time Goal

DOVER, DE – Governor Jack Markell presented Insurance Commissioner Karen Weldin Stewart with a proclamation today recognizing the Department of Insurance’s licensing of its 1,000 captive insurance company, AWI, Inc. of Voorhees, New Jersey.

The proclamation recognizes Delaware as one of the foremost captive domiciles in the world, currently the sixth largest globally and the third largest nationwide. DOI’s captive bureau is self-sustaining and currently contributes an annual surplus of tax and fee revenue of over $3 million to the Delaware general fund. Captive insurance entities are owned by the companies that they insure, and are generally formed by businesses who wish to better manage the cost and administration of their insurance coverage.

“When I took office in 2009, Delaware was home to only 38 captive insurance companies, I immediately saw the revenue potential for growing our captive insurance business,” said Commissioner Stewart. “I promptly formed the Bureau of Captive and Financial Insurance Products. Since then the bureau has generated more than $11 million in revenue.”

“I want to thank the Governor and the General Assembly for their continued cooperation in making Delaware a friendly place for corporations around the country and the world to do business,” said Stewart. “Of course Delaware’s unique Court of Chancery also deserves credit for establishing a stable and reliable legal environment in which captives can thrive.”

“In the future, I intend to reach out around the world to new markets for captive insurance and continue to increase the number of captive insurance entities domiciled in Delaware.”

AWI‘s parent company, American Water, was founded in 1886 and is the largest and most geographically diverse publicly traded water and wastewater utility company in the United States.

AWI will receive formal recognition as Delaware’s 1000^th captive at the Delaware Captive Insurance Association Fall Forum on November 12 at the Chase Center on the Riverfront in Wilmington.

Seated: Governor Markell.

Front Row: Deputy Insurance Commissioner Hardy Drane; Assistant Secretary of State Rick Geisenberger; Insurance Commissioner Karen Weldin Stewart; Senior Captive Analyst Rasa Zubielaite.

Back Row: Captive Director Assistant Mark Murowany; DOI Chief of Staff Paul Reynolds; Captive Bureau Director Steve Kinion; DOI Director of Communications Jerry Grant; Captive Office Manager Jamie Bafundo; Insurance Examiner Raciel Moratin.

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More information at http://captive.delawareinsurance.gov/

For more information:  Jerry Grant 302-674-7303

For more photos, go to https://www.flickr.com/photos/delawaregovernor/sets/72157660237905428

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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