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.
In 2005, Delaware enacted legislation 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 insurers such as Aetna, Allstate, and MetLife.
"Capstone is 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.
"After becoming a licensed Delaware captive manager 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."
This 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. "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."