BEST REPORTS CAPTIVE INCREASE

A.M. Best’s newly published Captive Directory reports that 245 new captive insurance companies were formed in 2000, while 170 were liquidated, a net gain of 31.6 percent over 1999. Best predicted further growth in 2001 to result from a continued firming in prices in commercial lines. Best estimated that the alternative insurance market comprised nearly 40 percent of the total commercial market in the U.S. by year-end 1999, and predicted that market share to approach 50 percent in 2003. Bermuda is still the leading domicile for captives with 31.5 percent of the world’s total. Its nearest rival, The Cayman Islands, is home to 535 captives. The next eight are: Vermont, Guernsey, Luxembourg, Barbados, The British Virgin Islands, Ireland, The Isle of Man and Hawaii.