Texas

SRS Contact:

Andrew Marson
Senior Account Manager

Tel: 512 962 8252

Team Members:

Andrew Marson

Ann Wick

Webinars:

2015 The State of the Captive Insurance Market

Announcements:

SRS Opens Texas Office

.

Overview

In the 83rd Session (2013) the Texas Legislature passed and Governor Perry signed Senate Bill 734 which allows Captive Insurance Companies to be domiciled in the state of Texas for the first time. With its abundance of Fortune 500 companies, a booming economy fueled by oil and gas and a friendly business climate, Texas promises vibrant growth potential for the captive insurance market. At the end of 2014 Texas had 12 active captives.

Minimum Capital and Surplus

Single parent captive $250,000

Key Features of Legislation

The initial focus of the legislation is to offer a domestic captive option to Texas based companies, while the current legislation only allows for the formation of single parent captives there is a push to enhance the statute in 2015. Premium tax is charged at a rate of 0.5% with an annual minimum of $7,500 and a maximum of $200,000. The initial application / re-domestication fees have been fixed at $1,500 until December 30, 2018.

Specialty

The Texas Department of Insurance is committed to the development of a robust captive market to assist Texas businesses manage their unique risks. In the past year, Texas has devoted extensive resources to develop regulations to fully implement the new law.

SRS Presence

SRS was approved as a captive manager in Texas in 2013 and will establish a physical presence in Austin in early 2015.