arrow_back All Domiciles / South Carolina
public Onshore (USA) verified Last Verified: 2026-11-06

South Carolina

South Carolina has licensed captive insurers since the enabling law of 2000, now Title 38, Chapter 90 of the Code of Laws, and supervises them through the Department of Insurance Captive Insurance Division. The Division reported 235 active captive insurance companies as of February 2026 and 15 new licenses in 2025. A pure captive must hold at least $250,000. An industrial insured captive or a risk retention group must hold at least $500,000, and an association captive at least $750,000. A special purpose financial captive's minimum initial capital is $250,000 in cash. Sponsored captives, and special purpose captives that are not risk retention groups, have capital set by the director. Direct premium tax is 0.4% on the first $20 million and 0.3% after that. Assumed-reinsurance tax steps from 0.225% down to 0.025%. The combined tax has a $5,000 minimum, prorated in the year a captive is first licensed, and a $100,000 maximum. After a completed application, the Division expects licensing to take 30 to 45 days, with additional time possible for a special purpose financial captive.

Quick Facts

Verified 2026-11-06
Jurisdiction
Onshore (USA)
Legislation
South Carolina Code of Laws, Title 38, Chapter 90 (Captive Insurance Companies)
Tax Environment
Under S.C. Code §38-90-140, tax is paid to the Department by March 1. Direct premiums, after return premiums, are taxed at 0.4% on the first $20 million and 0.3% on each dollar after that. Assumed reinsurance premiums are taxed at 0.225% on the first $20 million, 0.150% on the next $20 million, 0.050% on the next $20 million, and 0.025% after that. Reinsurance tax does not apply to risks already taxed on a direct basis, or to a qualifying assumption of reserves under common ownership and control that is part of a plan to discontinue the cedent's related operations. If the direct and assumed taxes together are under $5,000, the captive pays a $5,000 minimum. In the calendar year of first licensure that minimum is prorated by quarter: $5,000, $3,750, $2,500, or $1,250. If the calculated taxes exceed $100,000, the captive pays a $100,000 maximum. Captives under common ownership and control are taxed as separate companies. For a branch captive the tax applies only to branch business. For a sponsored captive, the sponsored captive and its incorporated and unincorporated protected cells are taxed on a consolidated basis as one captive. This tax is in lieu of other occupation taxes, except ad valorem taxes on real and personal property used in producing income. A special purpose financial captive is taxed under §38-90-580 at the same direct and assumed rates, with its own $5,000 minimum and $100,000 maximum, and each of its protected cells is taxed as a separate special purpose financial captive. The Division's fee schedule publishes the same $5,000 minimum and $100,000 maximum.
Contact
South Carolina Captive Insurance Division
captivemail@doi.sc.gov
Last Verified
verified 2026-11-06
Financial Requirements

Minimum Capital & Surplus

Structure Type Minimum Capital
Pure Not less than $250,000 of free and unimpaired paid-in capital, surplus, unrestricted net assets of a nonprofit, or a combination (S.C. Code §38-90-40(A)(1)(a)).
Association Not less than $750,000 for an association captive incorporated as a stock insurer or mutual insurer, or organized as a limited liability company (§38-90-40(A)(1)(b)).
Industrial insured Not less than $500,000 (§38-90-40(A)(1)(c)).
Risk retention group Not less than $500,000 (§38-90-40(A)(1)(c)).
Sponsored An amount determined by the director after considering the business plan, feasibility study, and pro formas, including the nature, scale, and complexity of the risks (§38-90-40(A)(1)(d)). The Division's types page states the same case-by-case standard.
Special purpose For a special purpose captive that is not a risk retention group, an amount determined by the director on the same business-plan basis as a sponsored captive (§38-90-40(A)(1)(e)).
Special purpose financial captive Not less than $250,000. All of the minimum initial capitalization must be cash. The director may require additional capital (S.C. Code §38-90-460).
Branch captive Section 38-90-40(C) requires a United States trust, funded by an irrevocable letter of credit or other acceptable asset, of not less than the reserves on policies and reinsurance written through the branch, with a credit the director may allow for security already posted with a reinsurer or fronting company. The Division's types page separately lists a $250,000 statutory minimum for a branch captive under §38-90-40.
Additional capital The director may prescribe additional capital and surplus based on the type, volume, and nature of business to be transacted (§38-90-40(A)(2)). Required capital is held as cash, approved securities, a clean irrevocable letter of credit, or another form the director approves.
info

Regulatory Framework

South Carolina Code of Laws, Title 38, Chapter 90 (Captive Insurance Companies)

Applicable Statutes & Regulations

South Carolina Code of Laws Title 38, Chapter 90, originating in 2000 Act No. 331 and including 2018 Act No. 251 and 2025 Act Nos. 42 and 62. Capitalization is §38-90-40. Licensing and the ordinary fee are §38-90-20. Annual reports are §38-90-70. Premium tax is §38-90-140. Special purpose financial captives are Article 3 of the chapter, including capitalization in §38-90-460, fees in §38-90-440, and tax in §38-90-580.

account_balance_wallet

Tax Environment

Under S.C. Code §38-90-140, tax is paid to the Department by March 1. Direct premiums, after return premiums, are taxed at 0.4% on the first $20 million and 0.3% on each dollar after that. Assumed reinsurance premiums are taxed at 0.225% on the first $20 million, 0.150% on the next $20 million, 0.050% on the next $20 million, and 0.025% after that. Reinsurance tax does not apply to risks already taxed on a direct basis, or to a qualifying assumption of reserves under common ownership and control that is part of a plan to discontinue the cedent's related operations. If the direct and assumed taxes together are under $5,000, the captive pays a $5,000 minimum. In the calendar year of first licensure that minimum is prorated by quarter: $5,000, $3,750, $2,500, or $1,250. If the calculated taxes exceed $100,000, the captive pays a $100,000 maximum. Captives under common ownership and control are taxed as separate companies. For a branch captive the tax applies only to branch business. For a sponsored captive, the sponsored captive and its incorporated and unincorporated protected cells are taxed on a consolidated basis as one captive. This tax is in lieu of other occupation taxes, except ad valorem taxes on real and personal property used in producing income. A special purpose financial captive is taxed under §38-90-580 at the same direct and assumed rates, with its own $5,000 minimum and $100,000 maximum, and each of its protected cells is taxed as a separate special purpose financial captive. The Division's fee schedule publishes the same $5,000 minimum and $100,000 maximum.

Detailed Profile

Regulatory & Statistical Profile

bar_chart Captive Market Volume

Reporting Year 2026
Total Active Captives 235
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

Pure captive insurance companiesAssociation captive insurance companiesIndustrial insured captive insurance companiesRisk retention groupsSponsored captive insurance companies, with incorporated or unincorporated protected cellsSpecial purpose captive insurance companiesSpecial purpose financial captivesBranch captive insurance companies

payments Fees & Solvency Compliance

Year Legislation Passed
2000
Licensing Speed
30 to 45 days after receipt of a completed application, depending on complexity. Special purpose financial captives may require additional review time.
Premium Tax Rate
Direct premiums: 0.4% on the first $20 million and 0.3% thereafter. Assumed reinsurance premiums: 0.225% on the first $20 million, 0.150% on the next $20 million, 0.050% on the next $20 million, and 0.025% thereafter. Combined minimum $5,000, prorated by quarter in the year of first licensure, and combined maximum $100,000. A special purpose financial captive is taxed at the same rates under §38-90-580, and each of its protected cells is taxed separately. Due March 1.
Incorporation / Initial Fee
For a captive other than a special purpose financial captive, S.C. Code §38-90-20 sets a nonrefundable $200 application-processing fee and a $300 license fee for the year of registration. The director may also charge the reasonable cost of outside legal, financial, and examination services. The Division's published schedule lists a $4,000 review fee for those captives and a $0 processing fee beside the $200 application fee. For a special purpose financial captive, §38-90-440 sets a $200 processing fee, a minimum $12,000 fee when internal resources examine the application ($6,000 on filing and the remainder on licensure) or the cost of outside services, and a $300 initial license fee. The Division schedule lists that application fee as $12,000.
Annual Maintenance Fee
Annual renewal license fee of $500 for captives and for special purpose financial captives (§§38-90-20 and 38-90-440). A special purpose financial captive also pays an annual review fee of $2,400, or the actual cost if the director determines that cost is higher.
Annual Filing Requirements
A risk retention group submits its annual report by March 1. Every other captive submits its annual report by July 1. The report is verified by two executive officers and uses generally accepted accounting principles unless the director approves statutory accounting principles (S.C. Code §38-90-70). A non-risk-retention captive with a fiscal year-end other than December 31 files its income statement and premium schedule before March 1 and the full annual report within 180 days after fiscal year-end. Premium tax is due March 1 (§38-90-140). Beginning the year after licensure, the board, the managing board of a limited liability company, or the subscribers' advisory committee of a reciprocal must meet at least annually with a quorum physically present in South Carolina, including at least two members physically present in the state (§38-90-20). The Division's filing calendar also sets June 30 for the non-risk-retention actuarial opinion and audited financial statements, and it sets quarterly statements and NAIC-style filings for risk retention groups and special purpose financial captives.

gavel Regulatory Contact Office

Supervisory Authority
South Carolina Department of Insurance, Captive Insurance Division
https://www.captives.sc.gov/ open_in_new
Office Address
1201 Main Street, Suite 1000, Columbia, SC 29201. Charleston office: 145 King Street, Suite 228, Charleston, SC 29401
Regulatory Department Staff
Pending verification
Captive Administrator
Andy Noga, Director of Captives
captivemail@doi.sc.gov
Phone: (843) 577-3413
Official Regulatory Sources
Request South Carolina Feasibility Study arrow_forward
arrow_back
Previous
Singapore
Next
South Dakota
arrow_forward

Considering South Carolina for Your Captive?

Our consultants provide end-to-end guidance on domicile selection, feasibility, and formation. Let us help you determine if South Carolina is the right fit.

Schedule a Consultation Compare Other Domiciles