Capstone Associated Services, Ltd today announced that it has formed a record number of captive insurance companies in Delaware. Coincidentally, Capstone in recent weeks crossed the 100-captive threshold and Delaware is fast approaching the same milestone with 97 captives.
Delaware has long enjoyed a reputation as the premier U.S. domicile for corporate formations. Today over 900,000 companies representing 63% of the Fortune 500 and 50% of companies traded on the NYSE and NASDAQ are incorporated in Delaware.
Delaware enacted legislation in 2005 modernizing state law regarding the formation of captives and positioning Delaware as home to the growing number of captive insurance companies being created by companies worldwide. Delaware has long been home to major insurance companies such as Aetna, Allstate, MetLife, GenRe, MunichRe, and AIG’s former Asian insurer (now part of MetLife), Alico.
"Capstone is recognized as among the top captive management firms licensed by the State of Delaware, where our captive legislation is tailored for middle market captives," says Mary Jo Lopez, Director of Business Development for the Delaware Department of Insurance. “Capstone is among the most active, having licensed numerous captives in Delaware, representing insureds throughout the United States.”
"After becoming a licensed captive manager in Delaware in 2009, we significantly expanded our domestic captive formations," explains Lance McNeel, Capstone's Director of Insurance. Capstone is also a licensed captive manager in Anguilla. "Our willingness to establish staffed offices in the best jurisdictions--both in the U.S. and in British territories--reflects how we meet our clients' needs, wherever it makes the most sense."
Late last year, Capstone announced the formation of its CAPTIVE_FORMATIONSth captive insurance company. Capstone formed its first captive in 1998 and has since formed captives for middle market businesses headquartered throughout the United States.
"Our continued growth is a reflection of the broadening acceptance of alternative risk planning beyond the larger, publicly held companies where captive planning is commonplace," says Clete Thompson, Capstone's VP of Business Development.
"Forming a captive is among the best risk management and financial planning tools available for middle market businesses. Capstone's clients use alternative risk financing strategies to reduce insurance costs, improve risk management, customize coverages and increase cash flow,” commented Thompson.
"We've come a long way since forming our first captive CAP_YEARS_NUMBER years ago," exclaims Thompson. "Today we operate captives for clients located from the east coast to the west coast, and from the Canadian border to the Gulf of Mexico. And we still operate the very first captive we formed back in 1998!"
Already thousands of businesses representing industries such as manufacturing, fabrication, distribution, medical, finance and construction, now participate in alternative risk planning to better insure the risks of its affiliates.
"Over 90% of Fortune 1000 companies and many successful mid-market companies have captives," says McNeel. "An estimated 50% of all property & casualty premiums are written through captives."
Capstone Associated Services, Ltd. is the most integrated and largest outsourced provider of captive insurance services for the middle market. Jointly with their affiliated law firm, The Feldman Law Firm LLP, Capstone administers property & casualty insurance companies that provide alternative risk financing services to their affiliates. Capstone’s clients are drawn from the whole of the United States.
The integrated solution to alternative risk planning offered by Capstone brings together Capstone's insurance professionals and accountants; the Firm's tax, corporate, financing and regulatory lawyers; and outside CPAs, risk managers, property & casualty professionals and actuaries, offering middle market companies the most comprehensive risk planning solution available. Today, captives are the premier risk management and risk-financing tool for middle market companies.
For more information, contact:
Lance McNeel, VP - Business Development
Capstone Associated Services, Ltd.
Two Post Oak Central
1980 Post Oak Blvd.■ Suite 1950
Houston, TX 77056-3899
Editor’s Notes: As of CURRENT_YEAR, Capstone has been in operation for CAP_YEARS_NUMBER years and has formed over CAPTIVE_FORMATIONS captives. As of CURRENT_YEAR, The Feldman Law Firm has been in operation for LAW_YEARS_NUMBER years and has successfully resolved TAX_CONTROVERSIES tax matters. As of CURRENT_YEAR the cap on 831(b) captive insurance premiums is CURRENT_PREMIUM_CAP million.