The Delaware Department of Insurance (DoI) licensed 46 new captive insurance companies last year, a drop from the 117 captives licensed in 2017.
The DoI’s statistics showed that of the new captives licensed, 30 were on conditional licences.
Conditional licensing legislation was passed in October last year and allows selected captives to receive a conditional licence on the same day they submit an application, with six months to establish a permanent licence in the state.
Delaware is the first state to offer such a licence, which allows captives to conduct business while their application is reviewed.
The DoI statistics also showed that captives domiciled in the state generate over $12.5 billion in annual premium.
According to the DoI, Delaware ranks third in the US and fifth in the world in terms of captive domiciles, and is one of just four domiciles that are International Center for Captive Insurance Education trained.
Delaware insurance commissioner, Trinidad Navarro, commented: “Captive insurance formations faced a number of challenges in 2018, due to recent changes in tax law.”
“Despite the headwinds, Delaware’s having knowledgeable captive regulators continues to attract quality applicants.”
“We are committed to licensing captive insurers with sound business plans formed by reputable individuals. I thank my captive team for its hard work to make Delaware a leading captive domicile.”
Navarro also praised the state’s General Assembly, Governor John Carney, and the Delaware Captive Insurance Association for helping get the conditional licensing legislation passed.
