November 6, 2014

GOV. MALLOY: AETNA ESTABLISHING CAPTIVE INSURANCE COMPANY IN CONNECTICUT

Health Carrier's Subsidiary is State's Fifth and Largest Captive Insurer

(HARTFORD, CT) - Governor Dannel P. Malloy today announced that Aetna is establishing its captive insurance company in Connecticut, becoming the state's fifth licensed and largest captive insurer to date.

"This homecoming is great news," Governor Malloy said. "Aetna's commitment in establishing this important subsidiary in its home state speaks to the confidence that business and industry has in Connecticut to grow their operations. We have the skilled workforce to meet the needs of this emerging industry and the regulatory climate to properly oversee them."

A captive insurer is wholly owned by a parent company to insure the risks of the parent and its related companies. The Governor's 2011 comprehensive jobs legislation modernized the captive insurer statutes, clearing the way for the state to begin licensing these specialty insurers. It didn't take long then for the Insurance Capital to become a well-respected domicile for captive insurers.

The Connecticut Insurance Department's captive insurance regulatory program was recently named one of the best in the nation by Captive Review, a leading trade journal.

"There are nearly 40 states that regulate captive insurers, but Connecticut is carving out a creative and attractive niche in this emerging industry by helping companies form sustainable captive operations that will be in it for the long run," Insurance Commissioner Thomas B. Leonardi said. "The department appreciates the vision and staunch support from Governor Malloy and the legislature for helping grow this segment of the industry."

Aetna's captive, the Aetna Risk Insurance Company, will provide liability coverage for the company, including errors and omissions, employment practices liability, and other related coverages. The company previously had captive insurance operations in Bermuda.

Captives are managed by specialty firms that employ a range of financial, actuarial and legal professionals who are part of Connecticut's specialized insurance industry workforce. Once an alternative to the commercial insurance market, captives have evolved into strategic financial vehicles used for many different enterprises, such as manufacturing and health care.

"It is always gratifying to see our legislative efforts make a difference and in the case of captives, this was a sector we identified as having great potential," said State Senator Joseph J. Crisco, Jr. (D-Woodbridge). "Aetna and other corporations have recognized that, and I have no doubt there are more to follow."

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For Immediate Release: November 6, 2014

Facebook: Office of Governor Dannel P. Malloy