Vermont Passes New Captive Insurance Legislation
New legislation expands securitization options for captive insurers. Growth in this area has been driven by life insurance companies looking for a way to finance life insurance reserves.
Burlington, VT (PRWEB) June 12, 2007 -- Vermont Governor James Douglas has signed into law new legislation that will enable the Green Mountain State to allow for securitized transactions by captive insurers.
The bill was signed into law before more than one hundred members of Vermont's captive insurance community. Securitization using a reinsurance captive is a way for companies to optimize their balance sheet by transferring certain risks to the capital markets. Growth in this area has been driven by life insurance companies looking for a way to finance life insurance reserves.
"Securitizations are set to grow over the next few years and with our new legislation we feel Vermont will be an attractive jurisdiction for these types of transactions," said Leonard D. Crouse, Vermont's Deputy Commissioner of Captive Insurance. This new legislation will give an option to life insurance companies seeking to comply with Life Insurance Regulation XXX and Actuarial Guideline XXXVIII by utilizing securitization.
Vermont began licensing captive insurance companies in 1981. "This new legislation should put Vermont at the forefront of securitized transactions," said Governor Douglas. "It is another example of innovation in our captive industry."
"In addition to the growth of securitized transactions, we are also seeing an increase in professional liability coverage for physicians and hospital groups," said Dan Towle, Director of Financial Services for the Vermont Department of Economic Development. Vermont currently has nearly 100 captives writing medical malpractice coverage with approximately $1.6 billion in gross written premium last year.
Vermont is the largest captive insurance domicile in the US and second largest in the world, in terms of gross written premium, with $11.55 billion in 2006. Vermont is also home to 42 of the companies that make up the Fortune 100, and 19 of the companies that make up the Dow 30 have chosen to form captives in Vermont.
Find out more about Vermont's captive insurance industry on the web at: www.VermontCaptive.com.
###
See the original story at: http://www.prweb.com/releases/2007/06/prweb532574.htm
Post Comment:
Trackback URL: http://ca.prweb.com/pingpr.php/Q3Jhcy1IYWxmLUVtcHQtQ291cC1UaGlyLVplcm8=
Bookmark -
Del.icio.us |
Digg |
Furl It |
Spurl |
RawSugar |
Simpy |
Shadows |
Blink It |
My Web
|
Share The News
Submit this press release easily to any of these major bookmarking and social media sites.