PDF - Vermont Captive Insurance

RISK&
INSURANCE
April 2012
®
2012
Vermont
Laura Zehm,
vice president and
CFO, Community
Hospital of the
Monterey Peninsula
A
Picture
of Captive
Health
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INSURANCE
®
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APRIL 2012 | vol. 23 no. 3
contents
cover story
A4
A Picture
of Captive
Health
Two new Vermont captives
talk about their journeys from
concept to formation, revealing
the foundations behind the
domicile’s continued success.
BY MATTHEW BRODSKY
COVER PHOTO BY Paul Schraub
A14
Seeking Shelter
In Vermont, risk retention groups insure
all forms of risk, from risks facing colleges
and universities, to risk facing primary
care doctors and specialists, and even
to insurance agents.
BY Matthew Brodsky
A10
RRGs Still RSVP for
Their Spot in Vermont
Risk retention groups have always found
a special place in the Vermont domicile,
and continue to do so today no matter
what challenges they face.
A16
Number of new captives licensed in Vermont in 2011
A18
Number of captives by
size, type and industry
sector in 2011
A19
Number of active and
dissolved captives in
2011
BY Matthew Brodsky
A P R I L 2012
A3
A
Picture
of Captive
Health
laura Zehm, vice president and CFO of Community Hospital of the Monterey Peninsula. After months of research, the hospital decided to set up a
captive in Vermont. More health care companies are choosing the domicile as a place for their captive.
Two new Vermont captive owners talk about their
journeys from concept to formation, revealing
the foundations behind the domicile’s continued
success. BY MATTHEW BRODSKY
It was something nearly two years
in coming. At the beginning, there
was a hospital, Community Hospital
of the Monterey Peninsula, and the
many employers that sent their
injured and ill employees its way.
These employers were asking,
pleading, for ways to reduce their
health care benefits costs.
The hospital had an answer
for its own costs. As Laura Zehm,
vice president and CFO explains,
the hospital was able to reduce its
own budget by $44 million. Yet,
A4
risk & insurance®
even while reducing its own costs,
the hospital couldn’t pass down
savings to local businesses in terms
of cheaper health care provided to
employees.
“These savings to health care
costs did not benefit local employers
as much as it benefited insurance
plans,” Zehm said.
That didn’t deter Zehm. She was
determined to help her neighbors.
As surfers say, “Locals rule.”
So nearly two years ago, Zehm
began weighing options. One idea
was a self-insured group formed of
employers who would share stoploss coverage. Further research
and thought was put into it. It
took awhile, Zehm confesses, to
uncover the right people to discuss
the situation with. In this case, she
spoke with the head of a risk pool
to which the hospital belonged. He
recommended she speak with folks
at Willis. She also attended industry
events about the self-insurance
marketplace.
A captive emerged as the
solution. Other stop-loss captives
were already active and successful.
And with a group captive, employers
could band together to reduce
administrative costs and save on
premiums, which would otherwise
particularly stringent? It became
a nine-month process, educating
herself about captives and health
care regulations in the Golden State
and discussing the intricacies with
attorneys. Other hospitals were kind
go to the traditional insurance
market as profits. It was an
argument that Zehm figured would
be easy to make to employers.
“We’re going to save money for
you from day one,” she would tell
them.
The other benefit would be loss
control, or in this specific case,
employers working with their
employees to help them be healthier.
“It’s much more than just the
insurance side. It’s also the risk
management side,” Zehm said.
But there were two important
questions Zehm had to answer
before launching a captive. Was
a stop-loss group captive legal
in California, where restrictions
surrounding employee benefits are
Mutual Insurance Co., was formed
and active.
For the Archdiocese of New
Orleans, the process went a bit
quicker. The captive went live
on July 1, 2011, after months
of research and
preparatory effort.
“I didn’t want to go
The result was
to a state that wasn’t
similar though:
a captive formed
experienced with captives.
successfully with
Vermont was a clear
high expectations
winner.”
... and in a Vermont
—Laura Zehm, vice president and CFO,
domicile.
“We decided to
Community Hospital of the Monterey Peninsula
do it in Vermont
enough to share data. Zehm and her
because they have a track record,”
team built out a business plan.
said Jeff Entwisle, chief operating
This effort made the second
officer of the Archdiocese and
question seem easy: Where
director of its new captive,
should Community Hospital of the
Archdiocese of New Orleans
Monterey Peninsula domicile its new Indemnity Inc. “They’re good at it,
captive?
they’re efficient with it, they know
The hospital’s captive consultants what they’re doing,” he said about
at Willis had helped them apply a
the Vermont regulators.
“scoring system” to determine which
Entwisle stressed one of the other
jurisdiction best suited its needs,
factors that Zehm mentioned: how
taking into consideration factors
easy the Vermont regulators are to
such as taxes and other costs. The
work with. It helped too that Kane,
top scorer? Vermont.
the captive management company
The answer made sense to Zehm.
that set up the Archdiocese’s
“I didn’t want to go to a state that pure captive, also had a history of
wasn’t experienced with captives,”
successful captive formation in the
the CFO said. “Vermont was a clear
state.
winner.”
Vermont came up during New
A scoring system, though, was
Orleans Archdiocese’s initial
not all that should go into choosing a research as well when they studied
home for a captive. In August, Zehm
how the Archdiocese of New York
traveled to Burlington for the annual had established its captive, which
conference of the Vermont Captive
is domiciled in the Green Mountain
Insurance Association. The purpose
state. New York has had good results,
was to meet regulators “eyeball to
the COO said, so they have used
eyeball.”
their peers there as a model. New
Zehm appreciated how positively
York proved it was possible, and New
the regulators reacted to her
Orleans completed more actuarial
presentation, validating all of the
work to ensure it would work for its
effort and research she had put into
needs.
her business plan. She was won over
Now with the captive operational
by how approachable Vermont’s
within months, the Archdiocese
regulators were.
“They are real people you can sit
Summary
down and talk with,” she said.
The next step in the process—the
• Vermont scored high on a scouting
licensing and application process—
“report card” by the Community
was not onerous but smooth, given
Hospital of the Monterey Peninsula.
the fair and experienced approach
• When the New Orleans
of the regulators and the homework
Archdiocese was looking to set up
Zehm already put into the captive’s
a captive, it was reassured by the
business plan. By the end of 2011,
results of the New York Archdiocese,
which had a Vermont captive.
the hospital’s stop-loss group captive,
the Central Coast Community
A P RI L 2 0 1 2
A5
of New Orleans is set to reap its
most desired rewards: a bolstered
risk management program. Sure,
Entwisle said, with the captive
essentially providing its self-insured
retention for liability, sexual
misconduct, auto, workers’ comp
and property, saving on insurance
rates is also a factor.
“We’ve taken on more of the
risk ourselves and made it a point
to get the message out to all of
our decision-makers on the local
level, and let them know that risk
management is the vehicle that will
make the captive perform well,”
Entwisle said.
“We’re encouraged by the results
so far,” he adds.
ENCOURAGING RESULTS
Besides the Archdiocese of New
Orleans and Community Hospital
of the Monterey Peninsula, 39 other
parent companies launched captives in
Vermont in 2011. Forty-one is a solid
number, even surprising to some.
“We decided to do it in Vermont
because they have a track record.”
—Jeff Entwisle, director, Archdiocese of New Orleans
Indemnity Inc.
Yet for professionals who
are veterans to the industry, it
makes perfect sense that Vermont
continues to attract a torrent of
quality captives. As Tom Jones,
partner in the law firm of McDermott
Will & Emery LLP in Chicago,
explained point by point, Vermont
features a solid law that gets updated
as needed (the recent inclusion of
incorporated cells an example), an
infrastructure of service providers,
and knowledgeable and flexible
regulators that have earned respect
in the industry.
The domicile as a whole
represents a “repository of captive
knowledge that they accumulated
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over the last 25 years,” Jones said,
also describing it as “momentum.”
Whether a parent company is
for-profit or nonprofit, whatever the
sector, he said, “Vermont has all the
options.”
Vermont is particularly attractive
to parent companies looking to
launch a serious captive.
“If you want to go into captives
in a big way, Vermont is the place to
do it,” said Les Boughner, executive
vice president at Willis, citing
Vermont’s reputation, regulatory
standards and “critical mass” of
accountants, managers, investment
firms and other service providers.
Dan Towle, director of financial
services for the state of Vermont,
added: “It is important for
companies to conduct proper duediligence when exploring domicile
options. Choosing the appropriate
domicile is important to the overall
success of the captive.”
“If you want to go into
captives in a big way,
Vermont is the place to
do it.”
—Les Boughner, executive vice
president, Willis
As for the coming year, signs
point to another solid year.
“We expect captive formation to
be strong again in 2012 in Vermont,”
Towle said. “The general uncertainty
in the market and the proven track
record of Vermont keeps us at the
forefront of jurisdictions to domicile
your captive.”
Vermont will benefit from all of
the positives mentioned above of
course, as well as a “rising tide”
in the captive industry in general,
according to Jones.
Boughner at Willis agrees.
“We continue to experience a
The hospital’s captive consultants at
Willis had helped them apply a “scoring
system” to determine which jurisdiction
best suited its needs, taking into
consideration factors such as taxes and
other costs. The top scorer? Vermont.
The interior of a hospital. Vermont captive insurance officials have seen an increase in the
number of health care companies setting up captive companies in Vermont.
A8
risk & insurance®
tremendous amount of interest
around captives.”
“It’s being viewed as much more
a strategic tool than a reactive tool,”
he said of a captive. “Consequently
companies are forming captives
that are not particularly active
anticipating market change or
looking at other ways to use
captives, including terrorist
coverage.”
Another positive growth sign,
according to Nancy Gray, regional
managing director of captive and
insurance management for Aon
Global Risk Consulting-Americas, is
that the trend of captive dissolution
is returning to historic levels.
During the height of the
economic crisis in 2009, she said,
some parent companies looked to
save costs by consolidating multiple
captives, for instance, those acquired
during M&A activity. This activity
peaked in 2010.
Gray suggests that writing
employee benefits in captives
continues to be explored by
companies. In addition, the life
insurance company triple-X captive
is driving new formations in
Vermont, as Vermont continues to
grow its market share by proving
itself more able to provide timely
and fair regulatory and licensing
services. “Medical stop-loss is
popular as well,” Gray said.
Which brings us back to
Community Hospital of the
Monterey Peninsula and its CFO
Zehm, who is optimistic about 2012.
She foresees at least three new local
employers joining the group captive
that she entrusted with Vermont.
MATTHEW BRODSKY, a former editor
of Risk & Insurance®, is editor in chief of
Wharton Magazine.
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RRG’s
Still
RSVP
for their
Spot in
Vermont
Risk retention groups have always
found a special place in the Vermont
domicile, and continue to do so today
no matter what challenges they face.
By MATTHEW BRODSKY
Six new risk retention groups
formed in the Vermont captive
domicile in 2011. If you do the
math, that means that the number
of risk retention groups in the state
increased 7.2 percent over 2010,
from 83 to 89 in number.
Out of the captive Class of 2011,
RRGs make up nearly one out of
A10
risk & insurance®
every seven new captive formations.
Out of the entire 590 active captives
in Vermont, risk retention groups
make up an even greater percentage,
15 percent. This occurred in the
state where in 2010, already one in
three RRGs (out of a national total of
249) was housed.
Numbers do not lie, but neither
do the owners of those risk retention
groups, from both large and small
groups, who continue to be content
members of the Vermont domicile.
One such happy customer is
Janice M. Abraham, president and
CEO of United Educators.
“Vermont, where United
Educators is domiciled, has a welldeveloped, seasoned and stringent
regulatory process in place with
excellent people in the insurance
department overseeing risk
retention groups,” she told Risk
& Insurance® in an email. “We
believe that Vermont represents
the ‘gold standard’ for oversight
and regulation of captives,
including risk retention
groups.”
Yes, the “gold standard”
label still sticks, in particular
with risk retention groups
and the state’s regulatory
environment.
“Although they are very
business friendly, I always
felt that they do have their
standards,” said Richard
Cornelius of the Indiana
Risk Retention Group.
Tim Padovese, president
and CEO of Ophthalmic
Mutual Insurance Co.,
claimed authorship of one
of the most oft expressed
praises for Vermont
captive regulators: “Years
ago, I said that Vermont
is firm but they’re fair,”
he said.
Talk to any active
risk retention group,
and they will exclaim
how they have a
“great relationship”
with the regulators
in Vermont, as Rich
McCarthy, CEO of
American Land Title
Association, put it.
When American
Land Title started in
1988 in Vermont,
McCarthy said,
no other serious
onshore domicile
existed for what
his company
was looking to
do. And part of the reason was
the accessibility and earnestness
of not just the regulators, but the
legislature and the governorship, no
matter their political affiliation.
McCarthy recalled a time he was
sitting in the office of then governor
Howard Dean, a Democrat. Dean
was telling McCarthy to call him
anytime he needed anything. Look
me up, I’m in the book, was about
how Dean exclaimed it. When
McCarthy got back to his office,
he looked in the white pages, and
“Those working in RRGs
spend time and effort
to creatively and
innovatively service a
specific industry and/or a
homogenous group.”
—Dan Labrie, CEO, Housing Authority
Insurance Group
indeed, Dean was in the book.
“That’s how receptive they are to
us,” McCarthy said.
What made McCarthy’s decision
to house American Land Title in
Vermont easy back in 1988, and
still today, is the universe of service
providers and other captive owners
in the state.
As for the infrastructure of
service providers, Cornelius
cites the captive managers, law
firms, accountants and other
service providers that form a core
community in the Green Mountain
State, as well as the risk retention
group specialists, like niche auditors,
that exist in the state.
“I like it that I have 500 friends
in Vermont,” McCarthy said about
the Vermont Captive Insurance
Association and his fellow captive
owners.
McCarthy praises the Vermont
Captive Insurance Association for
continuously lobbying in Montpelier
for more regulators to be hired
because Vermont captives want to
be “regulated properly.”
The state listens. The captive
regulatory staff at last count
is 32, all “who can handle the
workload involved with monitoring
RRGs in compliance with
National Association of Insurance
Commissioners accreditation
standards,” said David Provost, the
deputy commissioner for Vermont’s
Captive Insurance Division.
“That’s our commitment
to the industry, and the state’s
commitment was clearly
demonstrated by our approval to
hire four new examiners this year,”
he said.
Cornelius also gives the VCIA
high marks for lobbying inside and
outside of Vermont on legislative
issues, and on leading the discussion
among its members and among
the captive community overall on
pressing industry issues.
“Whenever an issue comes up,
I sense everyone looks to Vermont.
Vermont always has a role,”
Cornelius said.
Provost made sure to stress this
point as well, about how his team is
involved with National Association
of Insurance Commissioners
committees and deliberations and
how Vermont Captive Insurance
Association represents Vermont’s
captive community in Washington,
D.C., and Montpelier.
FACING THE FUTURE
These reasons help explain why
the field of risk retention groups
in Vermont is still a healthy and a
diverse one. Although risk retention
groups are best known for being
used by health care-related groups,
Vermont has attracted a variety
of owners by sector, as Cornelius
pointed out.
Take the most recent crop. Out
of the six new groups in 2011, three
are health care related but one
is construction related, another
religiously affiliated and the third for
professional services.
Overall, the risk retention niche
is as vibrant as ever.
“RRGs are, in fact, growing,”
Abraham said.
In 2005, she said, risk retention
Summary
• Nearly one out of every seven
of the 41 new captive formations
licensed in Vermont in 2011 was a
risk retention group.
• Risk retention group experts
like Vermont because it has strong
regulations and skilled professionals
like lawyers and auditors.
A P RI L 2 0 1 2
A11
groups wrote about $1.8 billion of
commercial liability coverage. That
figure increased to $2.5 billion in
2010, or about 3 percent of the
total U.S. commercial liability
market. And risk retention group
business for the most part has solid
financial underpinnings. Abraham
points to a recent analysis of risk
retention groups by the Government
Accountability Office, which
revealed strong results in average
return on equity, surplus and
combined ratio from 2004 to 2010.
Abraham pointed to two primary
reasons why risk retention groups
continue to play a critical, albeit
niche role in the marketplace.
“Unlike traditional carriers, risk
retention groups have no incentive
to move in and out of markets
and therefore provide stability
in insurance coverage for their
members,” she said about point No. 1.
Point No. 2: RRGs are dedicated
and specialized for one given
industry or group of insureds, so
they are able to deliver tailored
coverages and risk management and
claims services.
“Those working in RRGs spend
time and effort to creatively and
innovatively service a specific
industry and/or a homogenous
group,” said Dan Labrie, CEO of
Housing Authority Insurance Group,
parent company of the Housing
Authority Risk Retention Group Inc.
As Provost explained: “When
members of a group are motivated
to reduce the frequency and severity
of losses because their own dollars
are at risk, and their peers are
on the risk retention group board
with them, the result is sharpened
focus on risk management and loss
prevention.”
The chief captive regulator added
a third reason for the success of risk
retention groups: their nimbleness
and ability to react to change faster
than the traditional insurance
market.
All of the risk retention group
owners interviewed for this piece
were as upbeat as Abraham, Labrie
and Provost about the future of this
particular flavor of group captives,
where members are also the owners
of the insurance company.
They all also, of course, recognize
the challenges facing the industry.
Perhaps the top legislative unknown
on the horizon are proposed changes
to the Liability Risk Retention
Act. The captive industry would
like to see the original act, passed
in 1986, allow risk retention
groups to expand into property
and commercial auto coverages,
versus only the casualty coverages
permitted now.
Abraham also welcomes the other
aspect of the proposed RRG-related
legislation, which would require good
governance practices and address
the attempts of nondomiciliary
states to regulate and impose fees
upon RRGs that sell insurance in
their states.
Padovese cited numerous times
when other states attempted to
govern Ophthalmic Mutual instead
of allowing his Vermont regulators
Wonders
of Captive Insurance
What growth means to you.
A12
risk & insurance®
to do their job. In these instances,
Ophthalmic Mutual would go to
that state, tell them about the
Liability Risk Retention Act and how
Ophthalmic Mutual follows Vermont
law, and tell them they could get
them in touch with Vermont if they
had questions. Ophthalmic Mutual
has sought legal help to challenge
offending states on occasion.
On the side of the RRGs was that
recent GAO report, which called for
Congress to tighten the language in
the original Liability Risk Retention
Act to clearly define the role of
domiciliary and nondomiciliary
states. Another development was the
recent summary judgment allowed
by the judge in Alliance of Nonprofits
for Insurance Risk Retention Group
v. Nevada, who ruled that the law
pre-empts Nevada’s prohibitions
against Alliance issuing auto liability
insurance.
Labrie lists other challenges
worth considering: the effects of
the economic downturn on RRGs
representing particularly hard-hit
“when members of a group
are motivated to reduce
... losses ... the result is
sharpened focus on risk
management and loss
prevention.”
—David Provost, deputy commissioner,
Captive Insurance Division
industries, such as construction;
the stiffer competition from the
traditional market due to soft cycles;
and the risk that the veteran staff
members of RRGs everywhere
will not be replaced with an able,
younger generation.
Whether the new RRG
legislation ever passes the House
of Representatives, and how risk
retention groups handle all the
other risks on the horizon, the
RRG marketplace will remain an
important part of the captive and
overall commercial insurance space.
Part of the reason is Vermont,
both as a secure domicile for current
and new groups and as a staunch
supporter of the industry.
“Vermont has a great staff and
infrastructure, they understand
the purpose of the industry and
work well its employees. Without
Vermont, Housing Authority Risk
Retention Group could not have
been as successful,” Labrie said.
MATTHEW BRODSKY, a former editor
of Risk & Insurance®, is editor in chief of
Wharton Magazine.
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A P RI L 2 0 1 2
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Seeking Shelter
In Vermont risk retention groups insure all forms of risk, from risks facing colleges and
universities, to risks facing primary care doctors and specialists.
In the Green Mountains, risk retention groups large and
small protect markets from risks of all kinds. Here is a
sample of the variety of risk retention groups seeking
advantages provided by Vermont.
United Educators
Why was it formed? Universities, colleges and schools
sought to fill a gap left by traditional insurance, to provide
stable pricing, clear policy language, broad coverage, and
tailored claims and loss-control services.
When was it formed? 1987
How big is it? United Educators insures more than 1,200
schools, colleges and universities. Its gross premiums in
2011 totaled $137 million.
What coverages does it offer? Primary general
liability, excess general liability, educators’ legal
liability, other miscellaneous liability, school
board legal liability and auto excess liability.
When was it formed? 1987
How big is it? OMIC covers more than 4,400
ophthalmologists in the United States, with $41 million in
premium written.
What coverages does it offer? Medical professional liability
Housing Authority Risk Retention Group
Why was it formed? The public housing community faced
a crisis in the mid-1980s. Insurance companies were
reluctant to provide coverage. Over time, the company
evolved from a single risk retention group into a group of 10
companies that provide a full line of coverage and related
services under the umbrella organization, Housing Authority
Insurance Group.
Indiana Risk Retention Group
Why was it formed? It addressed a hard market
and limited availability for medical-malpractice
insurance, allowing hospitals to have more say
in their insurance purchase, risk management
and claims-handling.
When was it formed? 2003
How big is it? It insures eight community
hospitals in Indiana with a premium base of
$5 million.
What coverages does it offer? Medical
malpractice, professional liability and general
liability.
American Land Title Insurance Co.
Why was it formed? In the mid-1980s, title insurance
agents could not find errors and omissions coverage.
The traditional market then wouldn’t participate in a
program put together by their trade association.
When was it formed? 1988
How big is it? American Land Title has about 2,000
members and writes $7.5 million in premium.
What coverages does it offer? Errors & omissions for
title insurance agents.
Ophthalmic Mutual Insurance Co.
Why was it formed? About 400 ophthalmologists received
notice of their policy cancellation and approached the
American Academy of Ophthalmology to address the issue
sought alternative solutions.
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risk & insurance®
When was it formed? 1987
How big is it? It provides insurance in the 48 contiguous
states and the District of Columbia. It generates nearly $35
million in premiums, has more than 800 member housing
authorities, and insures more than 750,000 family and
senior units and provides contingent liability insurance on
over 500,000 Section 8 units.
What coverages does it offer? Housing Authority Risk
Retention Group offers general liability written on an
occurrence form. In addition, it offers public officials
errors and omissions liability, law enforcement liability;
employment practices liability insurance; public officials
liability; mold; lead liability; and lead-based paint liability
insurance on a claims-made basis. Coverage is also
available for primary nonowned and hired auto liability, and
auto liability.
—Compiled by Matthew Brodsky
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timely and cost-effective.
Clear communication — it’s just part of the Pinnacle Difference!
ENTERPRISE RISK MANAGEMENT
REINSURANCE
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PRICING AND PRODUCT MANAGEMENT
PREDICTIVE ANALYTICS
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www.pinnacleactuaries.com
New Captives In 2011
Company Name
Date
Licensed
Type
Manager
Sportsman’s Insurance Company, Inc.
1/31/11
Pure
Willis
Gables Risk Retention Group, Inc.
2/24/11
Rrg
Marsh
Saturn Insurance Inc.
3/25/11
Pure
Willis
U.S. Fire & Indemnity Company
3/23/11
Pure
Beecher
The Attorney Professional Exchange Rrg, Inc.
3/25/11
Rrg
Ics
Raven Reinsurance Company
3/30/11
Pure (Spfc)
Marsh
Dorintal Reinsurance Limited
3/30/11
Pure
Marsh
Vgi Insurance, Inc.
4/27/11
Pure
Srs
Buckeye Assurance Corporation
5/13/11
Pure
Marsh
Scholar Reinsurance Company, Inc.
6/10/11
Pure
Marsh
Archdiocese Of New Orleans Indemnity, Inc.
6/28/11
Pure
Kane
Berkeley Re Limited
6/21/11
Pure (Branch)
Aon
Fifty Ninth Street Insurance Company, Llc
6/21/11
Pure
Willis
Dynamo Insurance Company, Inc.
6/22/11
Pure
Beecher
Aviva Re Usa Iii, Inc.
6/28/11
Pure (Spfc)
Marsh
Ipic Reinsurance Company
6/30/11
Pure
Aon
Sig Insurance Company
7/15/11
Pure
Towner
Lca Insurance Co., Inc.
7/15/11
Pure
Marsh
The Catholic Relief Insurance Co. Of America Ii
7/15/11
Sponsored
Aon
8/2/11
Sponsored
Kane
8/12/11
Pure
Marsh
8/2/11
Pure
Artex
Kane (Vermont) Scc, Inc.
Uch Assurance Company, Llc
United Methodist Insurance Company, Inc.
Lincoln Reinsurance Company Of Vermont Iii
8/15/11
Pure (Spfc)
Marsh
Ncmic Risk Retention Group, Inc.
8/19/11
Rrg
Towner
Western Catholic Insurance Company Rrg, Inc.
9/16/11
RrgArtex
Sbli Vt Re, Llc
9/28/11
Pure (Spfc)
Marsh
Lincoln Reinsurance Company Of Vermont Iv
10/4/11
Pure (Spfc)
Marsh
I.V.C. Insurance Inc.
10/17/11
Pure
Willis
Pacific Alliance Excess Reinsurance Company
11/10/11
Pure
Marsh
Restoration Risk Retention Group, Inc.
11/10/11
Rrg
Risk Services
Primetime Reinsurance Company, Inc.
11/18/11
Pure (Spfc)
Marsh
Ahrma Exchange
11/28/11
Association
Wilmington
Industrial Insured
Willis
Central Coast Community Mutual Ins. Co.
12/5/11
Blue Leaf Insurance Company
12/13/11
Pure
Marsh
Aviva Re Usa Iv, Inc.
12/13/11
Pure (Spfc)
Marsh
Miia Reinsurance Company
12/13/11
Pure
Srs
First British Vermont Reinsurance Company Ii
12/13/11
Pure (Spfc)
Marsh
Aviva Re Usa V, Inc.
12/13/11
Pure (Spfc)
Marsh
Wachovia Re, Inc.
12/20/11
Pure
Aon
Faith-Affiliated Risk Retention Group
12/22/11
Rrg
Aon
Cooperative Partnership Insurance Company
12/28/11
Sponsored
Chartis
A16
r i s k & i n s u r a n c e ®®
Parent Co.
Ultimate Parent
Industry
Bass Pro, Inc.
Bass Pro Group LlcRetail
Dr. Perez & Dr. Tano, Kidz Medical Service
N/A
Bp America Inc.
Bp Holdings North America Ltd/Bp PlcEnergy
Healthcare
Weingarten Investments, Inc.
Weingarten Realty Investors, Inc.
Real Estate
New York Law Firms And/Or Partners
N/A
Professional Service
Om Financial Life Insurance Company
Harbinger Om, LlcInsurance
Liana Limited (Holding Co.)
Dow Chemical Company
Manufacturing
Goliath, Inc.
Vanguard Group, Inc., The
Securities
Marathon Petroleum Corporation
N/A
Energy
New York Schools Insurance Reciprocal
New York School District Subscribers
Education
7887 Walmsley, Inc.
Archdiocese Of New Orleans
Religious Institution
Kraft Foods, Inc.
N/A
Manufacturing
Alexanders, Inc.
N/A
Real Estate
Cummins, Inc.
N/A
Energy
Aviva Life & Annuity Company
Aviva PlcInsurance
Bank Of America Corporation
N/A
Securities
Spirol International Holding Corporation
N/A
Manufacturing
Walgreen Co.
N/A
Healthcare
Catholic Relief Insurance Co. Of America
Catholic Mutual Relief Society Of America
Religious Institution
Kane (Usa) Inc.
The Kane Group
Insurance
United Church Homes, Inc.
N/A
Healthcare
Gcfa Of The United Methodist Church
N/A
Religious Institution
Lincoln National Life Insurance Company
Lincoln National Corporation
Insurance
Doctors Of Chiropractic
N/A
Healthcare
N/A
Religious Institution
The Savings Bank Life Insurance Co. Of Mass.
N/A
Insurance
Lincoln National Life Insurance Company
Lincoln National Corporation
Insurance
I.V.C. Holdings, Inc.
I.V.C. Industrial Coatings, Inc.
Manufacturing
Pacific Lifecorp
Pacific Mutual Holding Company
Insurance
Servpro Industries, Inc. & Franchises
N/A
Other
Citicorp Banking Corporation
Citigroup, Inc.
Insurance
Assisted Housing Risk Management Assoc.
N/A
Nonprofit Or Municipality
Community Hospital Of The Monterey Peninsula
N/A
Healthcare
Cnh America Llc
Cnh Global N.V.
Manufacturing
Aviva Life & Annuity Company
Aviva PlcInsurance
Miia Property & Casualty Group, Inc.
N/A
Banner Life Insurance Company
Legal & General Group PlcInsurance
Aviva Life & Annuity Company
Aviva PlcInsurance
Wells Fargo Bank, Na
Wells Fargo & Company
Banking
Faith-Affiliated Facilities Association
N/A
Healthcare
Charter Partners Risk Services, Inc.
N/A
Other
Ca And Az Roman Catholic Dioceses
Nonprofit Or Municipality
AA PP RI
RI LL 22 00 11 22
A17
A17
NUMBER & TYPE OF CAPTIVES BY GROSS PREMIUM WRITTEN
Based on 12/31/10 Gross Premium Written
INDUSTRIAL
PURE
TOTAL ASSOCIATION
INSURED
PURE
(BRANCH)
(SPFC)
RRG
SPONSORED
Less than $1 million
156
1
8
121
1
1
15
9
$1 - $5 million
139
5
6
97
2
0
25
4
$5 - $10 million
70
2
3
42
0
1
20
2
$10 - $50 million
115
3
5
82
1
5
17
2
$50 - $100 million
27
0
0
20
0
5
2
0
$100 - $500 million
32
0
2
18
0
8
4
0
over $500 million
10
0
0
4
0
6
0
0
549 11
Licensed in 2011
Total
24 384 4 2683 17
41
1
1
20
1
9
6
3
590
12
25
404
5
35
89
20
Source: Vermont Department of Banking, Insurance, Securities and Health Care Administration
NUMBER OF CAPTIVES BY INDUSTRY
Total at
12/31/11
AGRICULTURE3
BANKING48
COMMUNICATIONS10
CONSTRUCTION32
EDUCATION18
ENERGY25
ENTERTAINMENT10
FINANCING, Lending, Leasing6
HEALTHCARE94
HOTELS5
INSURANCE63
MANUFACTURING103
MEDIA5
NONPROFIT OR MUNICIPALITY
13
OTHER10
PROFESSIONAL SERVICE
35
REAL ESTATE
20
RELIGIOUS INSTITUTIONS
18
RETAIL28
SECURITIES11
TECHNOLOGY6
TRANSPORTATION24
WASTE MANAGEMENT
3
Total590
A18
risk & insurance®
Source: Vermont Department of Banking, Insurance,
Securities and Health Care Administration
12/31/1112/31/102011
Company Status: Active
VERMONT CAPTIVE
Association
12 120
Industrial Insured
25
24
1
INSURANCE COMPANIES
Pure
404 4022
LICENSE SUMMARY
Pure (Branch)
4
5
-1
Pure (Spfc)
34 259
RRG
90 855
Sponsored
20 182
12/31/11
Licensed In Current Year
Sponsored (Spfc)
1
10
Association1
Total Active
590
572
18
Industrial Insured
1
Pure20
Company Status: Dissolved
Pure (Branch)
1
Association
18 171
Pure (spfc)9
Industrial Insured
18
18
0
Rrg6
Pure
267 24918
Sponsored3
Pure (Branch)
3
1
2
Sponsored (spfc)0
2
20
Pure (Spfc)
RRG
44 431
Total Licensed
41
Sponsored
10
91
Sponsored (Spfc)
0
00
Source: Vermont Department of Banking, Insurance,
Securities and Health Care Administration
Total Dissolved
Total Licenses Issued
362
952
339
911
23
41
Save the Date for VCIA!
Learn new tools to help you in ‘Making the Right Call’
for your captive or captive-related business!
Targeted sessions to give insight into healthcare,
federal legislation, regulation & risk management
Vermont Captives:
Making the
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Many captive owner panelists and case studies
More seminars than ever, of varied formats & lengths
Top-notch education with CPE / CLE credit and as
much networking as you can pack into three days
Two Keynote Speakers: Dr. David P. Kelly, Chief
Market Strategist, J.P. Morgan Funds & Ed Hochuli,
one of the most respected officials in the NFL
VCIA 27th Annual Conference
August 7 - 9, 2012 Burlington, VT
Sponsorships available!
www.vcia.com
Online registration starts May 1
RandIVermontEdition2012blue.indd 1
3/13/2012 11:19:39 AM
A P RI L 2 0 1 2
A19
the responsibility of individual
companies. If one company has
member.
Larger, less predictable claims
for that policy year; any excess is
billed to the members.
r
in vermont, the course to
establishing a captive business is easy.
it’s our other courses that aren’t.
.
s
Country Club of Vermont
When companies explore captive insurance to manage risk, more often than not the
course will lead to Vermont. And once here, they find the most knowledgeable captive experts in the world, a flexible regulatory environment, and some other courses
— the kind with a dogleg here and a strategically placed bunker there. Find out
why we think Vermont will suit you to a tee by visiting us at:
www.vermontcaptive.com
AUGUST 2007
37