HARTFORD, Conn., Oct. 4 -- Gov. Dannel P. Malloy, D-Conn., issued the following news release:
Governor Dannel P. Malloy today announced that Stamford-based Charter Communications, the second-largest cable company in the nation, continues to expand its business footprint in Connecticut by basing its entire captive insurance operations in the state.
"This is a clear example of a Connecticut company that understands that Connecticut is a great place to do business - they are growing their corporate headquarters and adding hundreds of new, good paying jobs here," Governor Malloy said. "And now, by establishing their entire captive insurance operations in Connecticut, they are further committing their company to our state. We value Charter's confidence and look forward to their continued success."
The captive, Spectrum Communications Indemnity, Inc., is the largest of 15 captives licensed in Connecticut and will provide coverage for Charter's workers compensation, auto liability, general liability and employment practices liability.
"We are delighted that Charter has chosen Connecticut to grow its captive insurance operations," Connecticut Insurance Department Commissioner Katharine L. Wade said. "This gives the corporation the critical tools it needs to manage its costs and reinvest in its employees and overall operations. Connecticut provides companies of all sizes with a collaborative, prudent regulatory environment aimed at creating sustainable captives to insure and manage their risks for the long term."
"As a Stamford-headquartered business, Charter is pleased to bring our insurance captives to the state of Connecticut," Catherine Bohigian, Executive Vice President of Government Affairs for Charter Communications, said. "As Charter continues to grow in Connecticut, we look forward to furthering economic opportunities in the state."
A captive insurance company is wholly owned and controlled by a parent company or association, and operates to insure the parent's own risks. Captives are licensed and closely monitored by the state Insurance Department and provide innovative and unique solutions to problems with no other readily available market option and provide all types of business with creative financial management tools.
The Insurance Department initially licensed the captive insurer in December 2016 and Charter subsequently merged all its captive insurance operations as of May 31, 2017. As a result, the combined assets were approximately $400 million following the merger. Annual premiums are anticipated to be approximately $157 million for the current fiscal year.
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