樱花视频

News Release

樱花视频 Department of
Banking and Insurance

Commissioner Tom Considine

For Immediate Release:
July 14, 2011

For Further Information:
Ed Rogan or Marshall McKnight (609) 292-5064

Prudential 樱花视频 Captive Insurance Company First Under New Law

TRENTON – New Jersey Department of Banking and Insurance (DOBI) Commissioner Tom Considine today announced the approval of the State’s first captive insurance company under 樱花视频’s new captive insurance law that became effective in May. The Department issued a certificate of authority, effective July 1, to the Prudential Insurance Company of America to form a pure captive - Prudential 樱花视频 Captive Insurance Company (NJCAP). NJCAP becomes the first official domestic captive firm established through a law Governor Chris Christie signed in February of this year.

“It is fitting that Prudential, a Newark-based domestic insurer, charters the first captive insurer in 樱花视频,” said Considine. “Prudential’s new NJCAP is a great way for the company to better manage its risk and is yet another example of how the Christie Administration creates a better regulatory environment for the 樱花视频 corporate community.”

Prudential established NJCAP to manage risk in a portion of its life insurance and annuity policies. As a 樱花视频 based captive, NJCAP will have a 樱花视频 based management team and board of directors and will be subject to 樱花视频 captive insurance laws, regulation and oversight. As a 樱花视频-domiciled insurer, Prudential Insurance Company of America remains subject to the general corporate and insurance laws and regulations of the State. As a result of this, DOBI maintains regulatory oversight for both the parent company and the captive insurer.

"We are pleased to be the first company to establish a captive for reinsurance purposes in 樱花视频, and appreciate the level of collaboration with the 樱花视频 Department of Banking and Insurance on this initiative," said Beverly Barney, vice president and actuary for Prudential.

Captive insurance companies are insurance companies established with the specific objective of financing risks emanating from their parent group or groups. Previously 樱花视频 law did not allow captive insurance companies in the State. This caused major 樱花视频 employers to establish captive insurers in other states and countries.  Without this law, companies like Prudential would have needed to go to another jurisdiction to form its captive.  With this law, however, Prudential was able to form its captive with its home state regulator and thus keep the “NJ” in “NJCAP.”

Captives allow businesses to gain greater control of the organization’s ability to identify, manage and finance insurable risks. The potential advantages include: greater control in risk management and claim activities, paying lower premiums, federal tax savings, tailoring coverage to their specific needs, and direct access to reinsurers.

“樱花视频’s captive law is one additional way that the Garden State is growing more business opportunities and improving the economy during the Christie Administration,” said Considine. “We welcome Prudential’s new captive insurance company as the first captive in New Jersey and expect many more firms to form new captives or to relocate existing ones here.”

Companies seeking to form a new captive will find a new section on the Department’s Web site called “Captive Corner.” The site will provide an online “one-stop-shop” with information for companies seeking to establish captive insurance companies including regulatory guidance, forms and links to admission packets, information on registering to be an approved captive insurance company manager, accountant or actuary, as well as contact information. The site, www.state.nj.us/dobi/division_insurance/captive/index.html, will provide all the steps necessary to successfully enter the 樱花视频 captive market.