public Onshore (USA) verified Last Verified: 2026-10-28

Vermont

Vermont is the largest onshore captive domicile in the United States and a premier global captive hub, having pioneered the US industry with the enactment of the Special Insurer Act of 1981 (8 V.S.A. Chapter 141). Regulated by the Vermont Department of Financial Regulation (DFR) Captive Insurance Division—which maintains a dedicated in-house team of analysts and financial examiners—and supported by the Vermont Captive Insurance Association (VCIA), the state had 707 licensed captives ($243.6B in assets and $36.3B in gross written premium) at year-end 2025, with 51 new licences and 27 dissolutions. Vermont licenses nine distinct captive structures, offers a 30-day licensing turnaround, and provides a competitive graduated premium tax capped at $200,000 with a $5,000 tax credit in each of the first two years.

Quick Facts

Verified 2026-10-28

Jurisdiction

Onshore (USA)

Legislation

Special Insurer Act of 1981 (Title 8 V.S.A. Chapters 141, 142, and 142A)

Tax Environment

Graduated direct premium tax (0.38% on first $20M, 0.285% on next $20M, 0.19% on next $20M, 0.072% over $60M) and assumed reinsurance tax (0.214% on first $20M, 0.143% on next $20M, 0.048% on next $20M, 0.024% over $60M); $7,500 minimum and $200,000 maximum annual cap; $5,000 tax credit in each of the first 2 years; no Vermont corporate income tax on captives.

Contact

Christine Brown, Deputy Commissioner of Captive Insurance

christine.brown@vermont.gov

Last Verified

verified 2026-10-28

Financial Requirements

Minimum Capital & Surplus

Structure Type	Minimum Capital
Sponsored	USD $100,000
Pure	USD $250,000
Branch	USD $250,000
Agency	USD $250,000
Association	USD $500,000
Industrial Insured	USD $500,000
Risk Retention Group (RRG)	USD $1,000,000
Special Purpose Financial Insurer (SPFI)	USD $5,000,000
Affiliated Reinsurance Company (ARC)	USD $5,000,000

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Regulatory Framework

Special Insurer Act of 1981 (Title 8 V.S.A. Chapters 141, 142, and 142A)

Applicable Statutes & Regulations

Title 8, Vermont Statutes Annotated (V.S.A.), Chapter 141 (Captive Insurance Companies, 8 V.S.A. §§ 6001–6049o), Chapter 142 (Risk Retention Groups and Purchasing Groups), and Chapter 142A (Risk Retention Group Managing General Agents, Reinsurance Intermediaries, and Producer Controlled Insurers); Vermont DFR Regulation C-81-2 (Captive Insurance Financial Regulation).

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Tax Environment

Detailed Profile

Regulatory & Statistical Profile

bar_chart Captive Market Volume

Reporting Year 2025

Total Active Captives 707

New Captives Licensed 51

Dissolutions 27

pie_chart Structure Distribution

Pure / Single Parent 477

Group / Association 31

checklist Authorized Captive Structures

Pure captives (Single parent captives)Association captivesSponsored cell captives (Protected and Incorporated cells)Industrial insured captivesRisk retention groups (RRGs)Special purpose financial insurers (SPFIs)Branch captivesAgency captivesAffiliated reinsurance companies (ARCs)

payments Fees & Solvency Compliance

Year Legislation Passed

1981

Licensing Speed

30 days (14 days for qualifying RRGs)

Premium Tax Rate

Direct premiums: 0.38% on first $20M, 0.285% on next $20M, 0.19% on next $20M, 0.072% over $60M. Assumed reinsurance premiums: 0.214% on first $20M, 0.143% on next $20M, 0.048% on next $20M, 0.024% over $60M. Minimum annual tax: $7,500; Maximum annual tax cap: $200,000 (consolidated cap for sponsored captives and common ownership groups). $5,000 tax credit in each of the first 2 years.

Incorporation / Initial Fee

USD $500 initial licensure fee (USD $5,000 for SPFI) plus USD $6,000 actuarial application review fee (USD $10,000 for SPFI).

Annual Maintenance Fee

USD $500 annual license renewal fee due April 1 (USD $5,000 for SPFI).

Annual Filing Requirements

Annual financial report (VCAR or NAIC statement) due by March 15 for pure, association, sponsored, industrial insured, and agency captives, and by March 1 for RRGs and other captives (or within 75 days of fiscal year-end if approved for an alternative fiscal year). Annual audited financial statements and actuarial opinion due by June 30 (or 6 months after fiscal year-end). Board of directors (or committee of managers) must hold at least one annual meeting in Vermont.