Tennessee has licenced its 700th total captive structure and is now home to 211 pure captives and 489 cell captives.
International Paper, a Memphis-based global packaging, pulp and paper products company, became the 700th captive the domicile licenced.
International Paper was previously domiciled in Vermont, but decided to move their captive structure to their home state.
The domicile marked the occasion with a brief socially distanced event to celebrate the milestone.
Tennessee Governor Bill Lee recorded a video message for the event, and captive insurance section director Belinda Fortman presented a ceremonial license to International Paper’s assistant treasurer David Arick.
“I commend International Paper for choosing to relocate their captive insurance company to Tennessee and reaffirming their commitment to their global headquarters’ home state,” Governor Lee said.
“Tennessee remains committed to ensuring a business friendly and commonsense regulatory environment.”
Arick said that International Paper was excited to move its captive to the company’s home state.
“We are excited to celebrate this milestone with the State of Tennessee, Governor Lee and Commissioner Lawrence, and look forward to extending our relationship with Director Fortman and her captive insurance team,” Arick said.
“We have worked with the state for the past six years on our second captive and have a lot of confidence in the state as a fair and effective regulator. As a Memphis-based company, moving our captive to Tennessee will streamline administration and reduce operating costs.”
“International Paper’s relocation of its captive insurance company is the latest in a string of accomplishments for TDCI’s Captive Insurance Section and proof that Tennessee has the right mix of leadership and regulation to attract globally recognized brands,” Fortman said.
“Tennessee has proven that our business friendly environment combined with a stable and predictable regulatory environment make us the ‘gold standard’ of the South”
Kevin Doherty, Tennessee Captive Insurance Association (TCIA) president, commented that the news was “exciting” for Tennessee.
“This is very exciting news for Tennessee, and it represents the culmination of years of effort by the Tennessee General Assembly, the Department of Commerce and Insurance and the members of the captive insurance industry in Tennessee all working together in a productive public/private partnership,” he said.
“The captive market is as strong as ever in Tennessee and TCIA looks forward to many more captives being formed in Tennessee in the coming years.”
According to TDCI, “Tennessee captives have written over $6.4 billion in premium and collected over $16 million in taxes and fees”.