public Onshore (USA) verified Last Verified: 2026-11-06

Hawaii

Hawaii has licensed captive insurers since May 1986 under Hawaii Revised Statutes Chapter 431, Article 19, administered by the Insurance Division's Captive Insurance Branch. The Division's fact sheet reported 276 captive companies as of 30 September 2026. Licenses are issued in five classes. The statutory floors for unimpaired capital and surplus are $100,000 for a Class 1 pure captive that reinsures only, $250,000 for a Class 2 pure captive that may write direct insurance, and $500,000 for a Class 3 association or risk retention captive and for a Class 4 sponsored captive. Class 5 reinsurance or excess captives, and the security a branch captive posts in Hawaii, are set by the Insurance Commissioner. Premium tax has no minimum and a $200,000 maximum, and it does not apply to premiums already taxed where the risk is located or to reinsurance premiums assumed by the captive. A dormant captive holding a certificate of dormancy maintains at least $25,000 of capital and surplus and is not subject to that tax.

Quick Facts

Verified 2026-11-06

Jurisdiction

Onshore (USA)

Legislation

Hawaii Revised Statutes Chapter 431, Article 19 (Captive Insurance Companies)

Tax Environment

Premium tax under HRS §431:19-116 is paid to the director of finance through the commissioner by March 1. On gross premiums for risks resident, situated, or located in Hawaii, and on risks elsewhere on which no premium tax is otherwise paid, less return premiums and less reinsurance accepted, the rates are 0.25% from $0 to $25 million, 0.15% from more than $25 million to $50 million, 0.05% from more than $50 million to $250 million, and 0% above $250 million. There is no minimum tax. The annual maximum aggregate tax is $200,000. The tax is in lieu of other Hawaii state and county taxes except taxes on real property and on the purchase, use, or ownership of tangible personal property. The Insurance Division states the same rule as a tax on the captive's own premiums only, with no tax on premiums already taxed where the underlying risk is located and no tax on reinsurance premiums assumed by the captive. A dormant captive that holds a certificate of dormancy is not subject to the §431:19-116 tax (HRS §431:19-117).

Contact

Andrew J. Kurata, Deputy Commissioner and Captive Insurance Administrator

captiveins@dcca.hawaii.gov

Last Verified

verified 2026-11-06

Financial Requirements

Minimum Capital & Surplus

Structure Type	Minimum Capital
Class 1	Not less than $100,000. A Class 1 company is a pure captive licensed to write business only as a reinsurer (HRS §§431:19-101 and 431:19-104).
Class 2	Not less than $250,000. A Class 2 company is a pure captive licensed to write direct insurance, or direct insurance and reinsurance.
Class 3	Not less than $500,000. A Class 3 company is an association captive or a risk retention captive. Other provisions of Chapter 431 may require more.
Class 4	Not less than $500,000. A Class 4 company is a sponsored captive.
Class 5	An amount set by the Insurance Commissioner case by case. A Class 5 company is a reinsurance or excess captive licensed under HRS §431:19-111.5.
Branch captive	In lieu of the class minimum, the commissioner determines the amount and form of security maintained in Hawaii after considering the risk retained in the state, the outside captive's financial condition, and other security already posted (HRS §431:19-104(c)).
Dormant captive	Not less than $25,000 of unimpaired paid-in capital and surplus while a certificate of dormancy is in force (HRS §431:19-117).
Commissioner discretion	The commissioner sets each captive's required unimpaired capital and surplus after considering the nature and volume of its business. The class amounts are floors. Capital may be held in cash, an irrevocable letter of credit, public obligations, or another form the commissioner approves.

info

Regulatory Framework

Hawaii Revised Statutes Chapter 431, Article 19 (Captive Insurance Companies)

Applicable Statutes & Regulations

Hawaii Revised Statutes Title 24, Chapter 431, Article 19 (Captive Insurance Companies), including §431:19-101 (classes), §431:19-102 (certificate of authority), §431:19-104 (minimum capital and surplus), §431:19-107 (financial statements), §431:19-108 (examinations), §431:19-116 (taxation), and §431:19-117 (dormant captive insurance companies, added by Act 69, Session Laws of Hawaii 2024). License and application fees are set in Hawaii Administrative Rules §16-17-6.

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Tax Environment

Detailed Profile

Regulatory & Statistical Profile

bar_chart Captive Market Volume

Reporting Year 2026

Total Active Captives 276

New Captives Licensed Pending verification

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

Class 1 pure captives writing reinsurance onlyClass 2 pure captives writing direct insurance, or direct insurance and reinsuranceClass 3 association captivesClass 3 risk retention captivesClass 4 sponsored captives, which may use protected cellsClass 5 reinsurance or excess captivesBranch captives of an outside captiveDormant captives holding a certificate of dormancy

payments Fees & Solvency Compliance

Year Legislation Passed

1986

Licensing Speed

No published standard timeline. Once issued, a certificate of authority authorizes business until April 1 and may be renewed (HRS §431:19-102).

Premium Tax Rate

0.25% on the first $25 million, 0.15% from $25 million to $50 million, 0.05% from $50 million to $250 million, and 0% above $250 million. No minimum tax. Maximum annual tax $200,000. No tax on premiums already taxed where the risk is located, on assumed reinsurance, or on a dormant captive holding a certificate of dormancy.

Incorporation / Initial Fee

$50 initial business-registration incorporation fee and a $1,000 nonrefundable captive application fee. If the commissioner uses an independent advisor to review an application or business-plan amendment, the applicant pays a reasonable fee authorized by the commissioner (HRS §431:19-102; Hawaii Administrative Rules §16-17-6).

Annual Maintenance Fee

$15 annual business-registration fee. The certificate-of-authority renewal, due on or before April 1, is $300 for a Class 1 or Class 2 captive, $500 for a Class 3 captive, and $1,000 for a Class 4 or Class 5 captive (HAR §16-17-6). A certificate of dormancy is renewed every five years for $300 (HRS §431:19-117).

Annual Filing Requirements

A captive other than a risk retention captive files financial statements, prepared on generally accepted accounting principles or another basis the commissioner accepts and audited by an independent certified public accountant or another professional the commissioner accepts, on or before the last day of the sixth month after its fiscal year-end (HRS §431:19-107(a)). A risk retention captive files an NAIC annual statement and a risk-based capital report by March 1 and an audit by June 1. Actuarial opinions on reserves are included with the audited statements, except that a Class 3 company files its actuarial opinion with the annual statement by March 1. The premium-tax statement is due March 1 (HRS §431:19-116). The governing body holds at least one meeting each year in Hawaii, and the captive keeps its principal place of business in the state (HRS §431:19-102). Examinations occur at least once every five years; a risk retention captive is examined no later than three years after formation and at least once every five years after that (HRS §431:19-108). The Captive Insurance Branch requires electronic annual filings to CaptiveInsAnnualFilings@dcca.hawaii.gov. A dormant captive with a certificate of dormancy files a verified report of its financial condition by March 1 and does not file the audited statements required by §431:19-107.