Dan Towle, Vermont's director of Financial Services, told NU Online New Service that although captive growth is down slightly, "it's solid growth, with fewer dissolutions. Last year our net was in the single-digit numbers."

He added, "We were happy with 39 [in 2009] and we're happy with 33 [in 2010], considering it's a weak economy in a soft market."

Vermont's new governor, Peter Shumlin, said in a statement, "I am extremely proud of the outstanding performance and leadership that Vermont delivers to the captive insurance industry. As the new governor of Vermont, I will continue to do whatever is necessary to keep pace with the needs of this important sector."

Mr. Towle said Gov. Shumlin, who replaces long-time governor and captive industry supporter Jim Douglas, served in the Senate representing Windham County for 13 years and has been a steadfast supporter of the captive industry.

"We expect nothing but continued support from the governor," Mr. Towle said.

The new captives formed include 19 pure captives, nine special purpose financial captives (SPFC), four new risk retention groups, and one industrial insured captive, bringing the total number of licenses issued in Vermont to 911.

"The activity in 2010 reflected a wide diversity of lines, with new energy in securitization and health care," said David Provost, deputy commissioner of BISHCA. "The applications were of very high quality, and we anticipate continued growth in 2011—and we are committed to allocating the resources necessary to provide consistent and quality service," he added.

Some of the companies in the class of 2010 include:  NBC Universal, Inc.; PricewaterhouseCoopers LLP; Aetna Inc.; Procter & Gamble Company; Crowe Horwath LLP; Towers Watson & Co. and Nationwide Financial Services, Inc. 

"Vermont will not rest on its laurels and we remain committed to being the gold standard of domiciles," said Governor Shumlin.  "Vermont is aggressively pursuing new opportunities to expand the captive industry. While some of our domestic competitors have reduced their commitment to promoting and regulating captives, Vermont is investing in this valuable sector of our economy," Shumlin said. 

Vermont is the largest captive insurance domiciles in the U.S. and the third largest in the world, with over $17 billion in gross written premium estimated in 2010. 

For more information on Vermont's captive industry, visit www.VermontCaptive.com.