Delaware licensed 22 captive insurance firms in 2008, bringing its total number of active licenses to 40.
This represents 122 percent growth during the calendar year and marks a significant increase over the five captives that were licensed prior to the revision of the Delaware statute in 2005.
The number could incerase again soon.
According to William P. White, administrator of the Delaware Captive Insurance Program, there are a number of captives currently in various stages of formation.
In addition, prospects for Delaware’s continued growth in 2009 look bright. “We believe the problems in capital and credit markets are being broadly evidenced in risk finance transactions by hardening prices in both insurance and reinsurance markets. This will probably continue through the remainder of this year and may create growth in the ART market with captives leading the way”, said Mr. White.
In addition, prospects for Delaware’s continued growth in 2009 look bright despite the economy. “We believe the problems in capital and credit markets are being broadly evidenced in risk finance transactions by hardening prices in both insurance and reinsurance markets. This will probably continue through the remainder of this year and may create growth in the ART market with captives leading the way,” said White.
Richard Klumpp, president of the Delaware Captive Insurance Association, said the captive growth is attributable to “the sound statute, financial services infrastructure and regulatory environment that exists within the state.”
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