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

North Carolina

North Carolina enacted the Captive Insurance Act in 2013 (Session Law 2013-116), now Part 9 of Article 10 of Chapter 58 of the General Statutes, and regulates captives through the Department of Insurance Captive Insurance Companies Division. At year-end 2025 the Department reported 263 captive insurance companies and 746 cells and series, including conditional licenses and approvals, for more than 1,000 risk-bearing entities. Those 263 companies were 188 pure captives, 48 protected cell captives, 9 risk retention groups, and 18 special purpose captives. During 2025 the state licensed 21 captive insurers, counting new formations and redomestications, and approved approximately 80 cells and series. Statutory capital floors are $250,000 for pure, protected cell, and special purpose captives, or another amount the Commissioner sets; $500,000 for association and industrial insured captives; $1,000,000 for a risk retention group; and $250,000 in cash for a special purpose financial captive. Direct premium tax is 0.4% on the first $20 million and 0.3% above that. The ordinary minimum is $5,000 and the ordinary maximum is $100,000. The redomestication premium-tax holiday expired for taxable years beginning on or after 1 January 2026.

Quick Facts

Verified 2026-11-06
Jurisdiction
Onshore (USA)
Legislation
North Carolina Captive Insurance Act (Chapter 58, Article 10, Part 9 of the General Statutes)
Tax Environment
G.S. 105-228.4A taxes a North Carolina captive, and taxes only the branch business of a branch captive. A foreign captive is not subject to this tax. Direct premiums, after return premiums, are taxed at 0.4% up to $20 million and 0.3% above $20 million. Assumed reinsurance premiums are taxed at 0.225% up to $20 million, 0.150% from $20 million to $40 million, 0.050% from $40 million to $60 million, and 0.025% above $60 million. Assumed-reinsurance tax does not apply to risks already taxed as direct premiums, or to a qualifying assumption of reserves between commonly controlled insurers that is part of a plan to discontinue one insurer. For any captive other than the multi-cell case below, the tax is at least $5,000 and at most $100,000. A protected cell captive with more than 10 cells, or a special purpose captive with a cell or series structure of more than 10 cells or series, pays at least $10,000 and at most the lesser of $100,000 plus $5,000 for each cell or series over 10, and $200,000. Two or more captives under common ownership and control are taxed as one captive, except a protected cell captive and a special purpose captive with a cell or series structure. The premium-tax report and payment are due by March 15. Captives subject to this tax are not subject to the franchise tax, to income tax except as G.S. 105-130.5A provides, to local privilege or local gross-premium taxes, or to the insurance regulatory charge. The redomestication holiday in G.S. 105-228.4A(g) expired for taxable years beginning on or after 1 January 2026. An inactive captive is not liable for tax under Article 8B of Chapter 105 for any full year it is inactive (G.S. 58-10-490).
Contact
Lori Gorman, Deputy Commissioner, Captive Insurance Companies Division
Last Verified
verified 2026-11-06
Financial Requirements

Minimum Capital & Surplus

Structure Type Minimum Capital
Pure Not less than $250,000 of unimpaired paid-in capital and surplus, or another amount determined by the Commissioner (G.S. 58-10-370(a)(1)).
Association Not less than $500,000 (G.S. 58-10-370(a)(2)). The Commissioner may prescribe additional capital.
Industrial insured Not less than $500,000 (G.S. 58-10-370(a)(3)). The Commissioner may prescribe additional capital.
Risk retention group Not less than $1,000,000 (G.S. 58-10-370(a)(4)). The Commissioner may prescribe additional capital.
Protected cell Not less than $250,000, or another amount determined by the Commissioner (G.S. 58-10-370(a)(5)).
Special purpose Not less than $250,000, or another amount determined by the Commissioner (G.S. 58-10-370(a)(6)).
Special purpose financial captive Not less than $250,000 of initial capital, all in cash. The Commissioner may require additional capital after reviewing the plan of operation, feasibility study, pro formas, and the risks insured or reinsured (G.S. 58-10-575).
Branch captive A branch captive is a pure captive for its North Carolina operations unless the Commissioner permits otherwise (G.S. 58-10-340). As security for branch liabilities it must hold an amount equal to the pure-captive minimum plus reserves on branch business, with a credit the Commissioner may allow for security already posted (G.S. 58-10-535).
Inactive captive Unimpaired capital and surplus in an amount determined by the Commissioner (G.S. 58-10-490). A risk retention group cannot be declared inactive.
Form of capital Cash, securities approved by the Commissioner, a clean irrevocable letter of credit from a bank the Commissioner approves, or another approved form (G.S. 58-10-370(c)). Special purpose financial captive minimum initial capital must be cash.
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Regulatory Framework

North Carolina Captive Insurance Act (Chapter 58, Article 10, Part 9 of the General Statutes)

Applicable Statutes & Regulations

North Carolina General Statutes Chapter 58, Article 10, Part 9 (Captive Insurance Companies), enacted by Session Law 2013-116 and amended by Session Laws 2014-65, 2015-99, 2016-78, 2018-120, 2022-7, and 2024-29. Capital and surplus are in G.S. 58-10-370. Special purpose financial captive capital is in G.S. 58-10-575 and the application fee is in G.S. 58-10-565. Annual reports are in G.S. 58-10-405 and the annual audit is in G.S. 58-10-415. Inactive captives are in G.S. 58-10-490. The captive premium tax is G.S. 105-228.4A.

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Tax Environment

G.S. 105-228.4A taxes a North Carolina captive, and taxes only the branch business of a branch captive. A foreign captive is not subject to this tax. Direct premiums, after return premiums, are taxed at 0.4% up to $20 million and 0.3% above $20 million. Assumed reinsurance premiums are taxed at 0.225% up to $20 million, 0.150% from $20 million to $40 million, 0.050% from $40 million to $60 million, and 0.025% above $60 million. Assumed-reinsurance tax does not apply to risks already taxed as direct premiums, or to a qualifying assumption of reserves between commonly controlled insurers that is part of a plan to discontinue one insurer. For any captive other than the multi-cell case below, the tax is at least $5,000 and at most $100,000. A protected cell captive with more than 10 cells, or a special purpose captive with a cell or series structure of more than 10 cells or series, pays at least $10,000 and at most the lesser of $100,000 plus $5,000 for each cell or series over 10, and $200,000. Two or more captives under common ownership and control are taxed as one captive, except a protected cell captive and a special purpose captive with a cell or series structure. The premium-tax report and payment are due by March 15. Captives subject to this tax are not subject to the franchise tax, to income tax except as G.S. 105-130.5A provides, to local privilege or local gross-premium taxes, or to the insurance regulatory charge. The redomestication holiday in G.S. 105-228.4A(g) expired for taxable years beginning on or after 1 January 2026. An inactive captive is not liable for tax under Article 8B of Chapter 105 for any full year it is inactive (G.S. 58-10-490).

Detailed Profile

Regulatory & Statistical Profile

bar_chart Captive Market Volume

Reporting Year 2025
Total Active Captives 263
New Captives Licensed 21
Surrendered Licenses Pending verification

pie_chart Structure Distribution

Pure / Single Parent 188
Group / Association Pending verification
Sponsored / Cell Captives 48
Individual Segregated Cells 746 as of 2025
Other Allowed Types 27

checklist Authorized Captive Structures

Pure captive insurance companiesAssociation captive insurance companiesIndustrial insured captive insurance companiesRisk retention groupsProtected cell captive insurance companiesSpecial purpose captive insurance companies, including cell or series structuresSpecial purpose financial captivesBranch captive insurance companiesInactive captive insurance companies declared by the Commissioner, other than risk retention groups

payments Fees & Solvency Compliance

Year Legislation Passed
2013
Licensing Speed
No published standard licensing turnaround. The Commissioner may grant provisional approval for not more than 90 days under G.S. 58-10-347 and may extend it in 30-day increments for good cause.
Premium Tax Rate
Direct premiums: 0.4% up to $20 million and 0.3% above $20 million. Assumed reinsurance premiums: 0.225% up to $20 million, 0.150% from $20 million to $40 million, 0.050% from $40 million to $60 million, and 0.025% above $60 million. Ordinary minimum $5,000 and ordinary maximum $100,000. A protected cell captive with more than 10 cells, or a special purpose captive with more than 10 cells or series, has a $10,000 minimum and a maximum of the lesser of $100,000 plus $5,000 per cell or series over 10, and $200,000. The redomestication tax holiday expired for taxable years beginning on or after 1 January 2026.
Incorporation / Initial Fee
The Department states that it charges no captive fees except the special purpose financial captive application review. Under G.S. 58-10-565(h), when the Department uses internal resources that review has a minimum fee of $12,000, of which $6,000 is payable on filing and the remainder on licensure. The cost of outside legal, financial, and audit services may also be charged to the applicant. Corporate organization fees are paid to the North Carolina Secretary of State and are not set in the Captive Insurance Act.
Annual Maintenance Fee
No North Carolina Department of Insurance annual captive license or renewal fee is published. The Department's stated exception to its no-fee practice is the special purpose financial captive application review described above, which is not an annual fee.
Annual Filing Requirements
Each captive submits a report of its financial condition as of the preceding December 31, verified by two executive officers, before March 15. Reporting is on generally accepted accounting principles unless the Commissioner requires or accepts another basis (G.S. 58-10-405). A pure, special purpose, or industrial insured captive may be allowed to file 75 days after its fiscal year-end. The annual audit and statement of actuarial opinion for captives other than risk retention groups are due by June 30, or within 180 days after an approved fiscal year-end (G.S. 58-10-415). Risk retention groups file under Parts 6 and 7 of Article 10 instead of that audit section. The premium-tax report and payment are due by March 15 (G.S. 105-228.4A). The Department's filing page for 2026 also lists Form C-202, the direct economic impact supplement, and Form C-207 for inactive captives. Filings are submitted electronically through the Department's online system or to the Captive Insurance Administrator. The Commissioner may waive the annual report if the annual audit is filed, and may grant a hardship exemption from the audit, but may not waive both at the same time. A request to skip the annual report is due at least 30 days before the report due date.

gavel Regulatory Contact Office

Supervisory Authority
North Carolina Department of Insurance, Captive Insurance Companies Division
https://www.ncdoi.gov/insurance-industry/captive-insurance open_in_new
Office Address
3200 Beechleaf Court, Raleigh, NC 27604. Mailing address: 1203 Mail Service Center, Raleigh, NC 27699-1203
Regulatory Department Staff
Pending verification
Captive Administrator
Nancy Staples, Captive Insurance Administrator
Phone: (919) 807-6180
Official Regulatory Sources
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