Slow and steady growth has served the state of Hawaii well and continues
to be one of the reasons it is consistently on the list of top domiciles for
captives, says Paul Shimomoto of the Hawaii Captive Insurance Council.
The state of Hawaii matched its best year ever since 1986
with its formation and licensure of 30 new captive insurance
companies in 2017. Eighty percent (24) of the new captives
were pure/single-parent captives; 10 percent (three) were
reinsurance-only captives, 6.6 percent (two) were risk retention
groups and 3 percent (one) was a sponsored (protected cell) captive.
In keeping with Hawaii’s strong attraction as a domicile for
companies in the western states, 46.67 percent (14) of the newlyformed
captives were formed by companies located in those states,
while 16.67 percent (five) were formed by companies based in the
central US. Notably, 36.67 percent of the newly formed captives
were formed by parent companies located in Japan. Also consistent
with Hawaii’s history of attracting diverse clientele, the new captive
owners come from various industries, which include financial
services, retail, manufacturing, construction, real estate, healthcare,
and transportation. As of December 31, 2017, there were 230 active
licensed captive insurance companies domiciled in the state.
Hawaii remains a premier US domicile for captives because, unlike
other captives domiciles, Hawaii has a separate and dedicated
captive insurance branch within the greater insurance division of
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