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Captive Insurance Minimum Required Capital and Surplus

Below is a list of the Minimum Required Capital and Surplus needs by jurisdiction as of this writing. Minimum capitalization means, generally speaking, the amount of money you need to deposit into a bank account in the name of the company in which you seek the insurance license before the license will be granted. Thus, it is not an expense, per-se, because you own the insurance company and the money, by and large, remains in your insurance company’s possession. It remains in the company as long as you need the insurance license. You can typically repay this to back yourself in the future if you no longer need the insurance company.

The reason for this requirement if claims need to be paid, regulators want to make sure that the company has sufficient reserves to pay them. With a closely held captive insurance company, the chances of having to pay claims is minimal. Nonetheless, to look like, and meet the requirements of, a real insurance company, having this slush fund is required by the regulations.

Please note that the amounts may vary depending on your particular needs. For example, in some jurisdictions, if the company has more than one owner (multiple owner vs. single owner) the capital requirements increase. There are also increased amounts of capital needed in most or all cases if the company is providing reinsurance, long-term insurance or general insurance.

Captive Insurance Minimum Capitalization

Alabama ($250,000)

Anguilla ($10,000 to $200,000)

Arizona ($250,000)

Barbados ($125,000)

Belize ($25,000)

Bermuda ($120,000)

British Columbia ($200,000)

BVIs ($100,000)

California (does not have captive legislation as of 2014)

Cayman Islands ($120,000)

Colorado ($500,000)

Cook Islands (must ensure that its capital and surplus are maintained in an amount not less than the higher of (a) the prescribed minimum amount ; or (b) such amount as the Commission may direct)

Curaçao (varies)

Delaware ($250,000)

District of Columbia ($250,000)

Florida ($250,000)

Georgia ($500,000)

Hawaii ($250,000)

Hong Kong ($100,000)

Illinois ($1,000,000)

Guam ($120,000)

Kentucky ($250,000)

Mauritius ($100,000 to $350,000)

Micronesia ($1,000,000)

Missouri ($250,000)

Montana ($250,000 regular – $125,000 reinsurance captive)

New Jersey ($250,000)

New York ($250,000)

Nevada ($200,000)

Nevis ($10,000 to $185,000 – reinsurers begin at $75,000)

North Carolina ($250,000)

Oklahoma ($150,000 pure 1st year provided $250k by end of 1st year)

Oregon ($250,000)

Panama ($150,000)

Qatar ($150,000)

Samoa ($100,000)

Seychelles ($5,000)

South Carolina ($250,000)

South Dakota ($200,000)

St. Lucia ($50,000)

St. Vincent ($10,000)

Tennessee ($250,000)

Texas ($250,000)

US Virgin Islands ($50,000)

Utah ($250,000)

Vanuatu ($25,000 – varies)

Vermont ($250,000)


For More Information

Offshore captive insurance offers some significant benefits to many companies, including small to large Fortune 500 firms. To form a captive insurance company, please feel free to contact us at 1-888-338-9868 or +1 661-253-3303 from 5:00 am to 5:00 pm US Pacific Time, 8:00 am to 8:00 pm Eastern.

This purpose of this page is to give a general overview of the subject matter. It involves complex legal and tax planning knowledge. It is not intended to give nor should it be considered tax or legal advice.