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public Onshore (USA) verified Last Verified: 2026-11-02

Delaware

Delaware licenses captives under Title 18, Chapter 69 of the Delaware Code. The Department of Insurance Bureau of Captive and Financial Insurance Products administers the chapter, and the Bureau's welcome page identifies House Bill 218 (2005) as the statute that modernized the law. The Department's 2025 year-in-review reported 638 captives after 51 new licences that year. Minimum capital and surplus is $250,000 for a pure, agency, branch or special purpose captive, $500,000 for an industrial insured captive or a sponsored captive, $750,000 for an association captive, and $1,000,000 for a risk retention group. A series captive's minimum is the amount the Commissioner specifies. Direct premium tax is 0.2 percent, with a $200,000 direct-tax cap, and assumed reinsurance premium tax is 0.1 percent, with a $110,000 cap. The annual minimum is $5,000, or $3,500 for a series captive, and the annual aggregate cap is $200,000. Under § 6914(d) that premium tax is in lieu of other Delaware state and local occupation taxes, other than ad valorem property tax. A conditional certificate of authority is dated the day the Bureau receives the emailed application, if the $3,600 fee arrives within 10 business days.

Quick Facts

Verified 2026-11-02
Jurisdiction
Onshore (USA)
Legislation
Title 18, Delaware Code, Chapter 69 (Captive Insurance Companies); the Bureau identifies House Bill 218 (2005) as the modernizing statute
Tax Environment
Direct premiums are taxed at 2/10 of 1 percent (0.2 percent), up to $200,000, and assumed reinsurance premiums at 1/10 of 1 percent (0.1 percent), up to $110,000. Premiums already taxed as direct premiums are not taxed again as assumed reinsurance, and no tax is due on annuity consideration. The annual minimum aggregate tax is $5,000, or $3,500 for a series captive. The annual maximum aggregate tax is $200,000, except that series captives formed in the same limited liability company or statutory trust are not aggregated into that cap. A captive that employs at least 25 qualified full-time individuals in Delaware pays $50,000 if the formula would otherwise exceed that amount. Tax is due by 15 April. Under § 6914(d) this premium tax is all of the tax collectible under Delaware law from a captive, and no other occupation tax is levied by the State or by a county, city or municipality, except ad valorem taxes on real and personal property used in the production of income. A dormant captive is not liable for the premium tax. There is no separate Delaware corporate income tax on captives in Chapter 69.
Contact
Stephen Taylor, Director, Bureau of Captive & Financial Insurance Products
captive@delaware.gov
Last Verified
verified 2026-11-02
Financial Requirements

Minimum Capital & Surplus

Structure Type Minimum Capital
Pure captive USD $250,000 (18 Del. C. § 6905(a)(1))
Agency captive USD $250,000 (§ 6905(a)(4))
Branch captive USD $250,000, or such other amount as the Commissioner determines (§ 6905(a)(8))
Special purpose captive USD $250,000, or such other amount as the Commissioner determines (§ 6905(a)(7))
Industrial insured captive USD $500,000 (§ 6905(a)(3))
Sponsored captive USD $500,000 (§ 6905(a)(6)). This is the sponsored captive minimum, not a published per-cell floor
Association captive USD $750,000 (§ 6905(a)(2))
Risk retention group USD $1,000,000 (§ 6905(a)(5))
Special purpose financial captive USD $500,000 if it is also a sponsored captive; USD $250,000 if it is not (§ 6905(a)(9))
Series captive The amount specified by the Commissioner (§ 6905(a)(10)). No default dollar amount is published in the statute
Additional and form of capital The Commissioner may prescribe additional capital and surplus based on the type, volume and nature of the business (§ 6905(b)). Minimum capital is held as cash, an irrevocable letter of credit from an institution chartered, licensed or otherwise authorized to do banking business in Delaware, or another institution or asset the Commissioner approves. Surplus-note proceeds may count if the Commissioner approves the note (§ 6905(c) and (d))
info

Regulatory Framework

Title 18, Delaware Code, Chapter 69 (Captive Insurance Companies); the Bureau identifies House Bill 218 (2005) as the modernizing statute

Applicable Statutes & Regulations

Title 18, Delaware Code, Chapter 69 (Captive Insurance Companies), including § 6902 (definitions), § 6903 (licence application, fees and conditional certificates), § 6905 (minimum capital and surplus), § 6906 (formation), § 6907 (annual reports), § 6914 (tax on premiums) and § 6924 (dormant captive insurance companies). The current text is published on the Delaware Code Online.

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Tax Environment

Direct premiums are taxed at 2/10 of 1 percent (0.2 percent), up to $200,000, and assumed reinsurance premiums at 1/10 of 1 percent (0.1 percent), up to $110,000. Premiums already taxed as direct premiums are not taxed again as assumed reinsurance, and no tax is due on annuity consideration. The annual minimum aggregate tax is $5,000, or $3,500 for a series captive. The annual maximum aggregate tax is $200,000, except that series captives formed in the same limited liability company or statutory trust are not aggregated into that cap. A captive that employs at least 25 qualified full-time individuals in Delaware pays $50,000 if the formula would otherwise exceed that amount. Tax is due by 15 April. Under § 6914(d) this premium tax is all of the tax collectible under Delaware law from a captive, and no other occupation tax is levied by the State or by a county, city or municipality, except ad valorem taxes on real and personal property used in the production of income. A dormant captive is not liable for the premium tax. There is no separate Delaware corporate income tax on captives in Chapter 69.

Detailed Profile

Regulatory & Statistical Profile

bar_chart Captive Market Volume

Reporting Year 2025
Total Active Captives 638
New Captives Licensed 51
Surrendered Licenses Pending verification

pie_chart Structure Distribution

Pure / Single Parent Pending verification
Group / Association Pending verification
Sponsored / Cell Captives Pending verification
Individual Segregated Cells Pending verification
Other Allowed Types Pending verification

checklist Authorized Captive Structures

Pure captivesAssociation captivesAgency captivesIndustrial insured captivesSponsored captives and protected cellsSpecial purpose captivesSpecial purpose financial captivesSeries captivesBranch captivesRisk retention groups

payments Fees & Solvency Compliance

Year Legislation Passed
2005
Licensing Speed
The 2024 Bureau application notice dates a conditional certificate on the day the emailed application is received, provided the $3,600 fee reaches the Dover accounting office within 10 business days. Only a captive manager that already manages at least two Delaware captives may file a conditional application. In October 2023 the Department said its goal for review of initial application filings is 30 days, down from 45, and that conditional applications received after 1 November are reviewed within 80 days. That 2023 goal is not restated in the 2024 notice or the March 2026 OPTins notice.
Premium Tax Rate
Direct premiums 0.2 percent, maximum $200,000. Assumed reinsurance premiums 0.1 percent, maximum $110,000. Annual minimum aggregate tax $5,000, or $3,500 for a series captive. Annual maximum aggregate tax $200,000. A captive with at least 25 qualified Delaware employees is capped at $50,000. No annuity tax. Dormant captives pay no premium tax.
Incorporation / Initial Fee
Nonrefundable application fee of $300 to review completeness, plus a nonrefundable processing fee of $3,200 (18 Del. C. § 6903(d)). The 2024 Bureau application notice collects $3,500 for a regular application. A conditional certificate adds a $100 fee under § 6903(d)(5); the same 2024 notice collects $3,600 for a conditional application. The annual licence fee for the year of registration is $400.
Annual Maintenance Fee
$400 certificate-of-authority renewal fee, due 15 April, payable with the premium-tax report. From the 2025 premium tax and 2026 renewal, payment may be made through OPTins or by the existing procedure. A dormant captive that has not resumed business after five years pays a renewal fee of $25,000 in the sixth year of dormancy and $5,000 in each year of dormancy after that (§ 6924(g)).
Annual Filing Requirements
Each captive other than a branch captive for which the Commissioner has waived the requirement files a report of financial condition by 15 April, verified by oath of two executive officers or authorized persons, using GAAP unless the Commissioner approves statutory accounting principles or international accounting standards (§ 6907). The Bureau requires the annual report (Form F-1, updated 31 March 2025, for pure captives, core LLCs and series; special purpose financial captives that file NAIC statements are excepted) by 15 April, or within 60 days of fiscal year-end where an alternate year-end is used. Audited financial statements and a statement of actuarial opinion, for captives that retain risk, are due by 30 June. Special purpose financial captives also file quarterly reports with the NAIC and the Bureau by 15 May, 15 August and 15 November. Premium tax and the $400 renewal fee are due by 15 April. Annual reports are emailed to captive@delaware.gov.

gavel Regulatory Contact Office

Supervisory Authority
Delaware Department of Insurance, Bureau of Captive & Financial Insurance Products
https://captive.delaware.gov/ open_in_new
Office Address
503 Carr Road, Suite 303, Wilmington, DE 19809
Regulatory Department Staff
Pending verification
Captive Administrator
Stephen Taylor, Director, Bureau of Captive & Financial Insurance Products, Delaware Department of Insurance
captive@delaware.gov
Phone: (302) 577-5280
Official Regulatory Sources
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