"It is fitting that Prudential, a Newark-based domestic insurer, charters the first captive insurer in New Jersey," says New Jersey Insurance Commissioner Tom Considine in a statement.

Prudential established NJCAP to manage risk in a portion of its life insurance and annuity policies, the department says. As a New Jersey-based captive, NJCAP will have a New Jersey-based management team and board of directors and will be subject to New Jersey captive-insurance laws, regulation and oversight.

"We are pleased to be the first company to establish a captive for reinsurance purposes in New Jersey, and appreciate the level of collaboration with the New Jersey Department of Banking and Insurance on this initiative," says Beverly Barney, vice president and actuary for Prudential.

New Jersey established a captive-insurance website in May called "Captive Corner" that provides information for companies seeking to establish captives, including regulatory guidance, forms and links to admission packets, according to the New Jersey Captive Insurance Association (NJCIA).

Gregg Sgambati, president of NJCIA, says in a statement, "The New Jersey Captive Insurance Association is clearly jubilant to see the first captive formed in New Jersey within two months of the law going into effect."

He adds that it is "very suitable that the first captive is owned by one of New Jersey's largest employers and most recognizable industry names."