Vermont Adds 41 New Captives in 2024

Vermont's captive insurance sector achieves significant growth, marking one of its best years since 1981.
By: | January 23, 2025
Topics: Captives | News
Vermont state house

Vermont reported strong growth in 2024 for the state’s captive insurance industry, with 41 new captive formations during the year, according to Vermont’s Department of Economic Development (DED).

Last year was one of the domicile’s 10 highest growth years since the inception of Vermont’s captive enabling legislation in 1981, according to a DED press release. The 41 new captives brought Vermont’s total to 683, including 654 active and 29 dormant captives.

The year 2025 is already off to a fast start, with eight new captives licensed in the first week of January, the DED reported.

“Vermont’s success has been built upon a system of dedicated resources and industry partners sharing the common goal of developing and maintaining captive insurance expertise, and advancing standards required to responsibly meet the needs of the industry,” stated Acting Commissioner, Department of Financial Regulation (DFR), Sandy Bigglestone.

Vermont’s influence as a captive domicile extends globally, with five of the new 2024 captives having international roots from France, the United Kingdom and Mexico. The state now hosts over 80 companies with international ownership, according to the DED.

The new captives represent 16 different industry sectors, with real estate, construction, health care and insurance leading the pack. The formation types included pure, sponsored, special purpose finance insurer and risk retention group.

Tightening commercial property insurance due to increased natural disasters is driving interest in captives, according to regulators.

“This has resulted in a rise in captive insurance companies in the real estate industry to mitigate these property coverage challenges and provide greater long-term stability and relief,” said Brittany Nevins, captive insurance economic development director for the DED.

The new year also marks the 40th anniversary of the Vermont Captive Insurance Association (VCIA), the DED noted. &

The R&I Editorial Team can be reached at [email protected].

More from Risk & Insurance