Wednesday, July 24, 2024

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Vermont captive assets increase 8% in 2023, but premium down

According to a new report by the Vermont Department of Financial Regulation, the overall assets under management (AuM) for Vermont-domiciled captives increased 8.1% to $230.5bn in 2023, up from $211.9bn in 2022.

Despite AuM increasing, there was a reduction in overall gross written premium (GWP) from $42.5bn in 2022 to $30.6bn in 2023.

Reinsurance ceded from Vermont captives saw a reduction to $5.6bn in 2023, down from $15.4bn in 2022, suggesting captives were retaining more of their own risk.

In 2023, 306 captives in Vermont were writing less than $5m in GWP, while 105 captives were writing more than $50m in GWP.

The total number of captives domiciled in Vermont at the end of 2023 was 659.

Companies in the manufacturing and real estate sector saw the greatest increase in the number of captives by industry.

Manufacturing industry captives increased from 102 in 2022 to 107 in 2023, while the number of real estate captives increased from 36 in 2022 to 41 in 2023.

The number of insurance industry-owned captives also saw a steady rise, increasing from 80 in 2022 to 83 in 2023.

The insurance sector also saw the greatest increase in cell utilisation in 2023 with 17 new cells formed in 2023.