Aetna to Establish Captive Insurer in Connecticut

Connecticut Gov. Dannel P. Malloy announced on Nov. 6 that Hartford, Connecticut-headquartered health insurer Aetna is establishing its captive insurance company in its home state, becoming the state’s fifth licensed and largest captive insurer to date.

Aetna’s captive, the Aetna Risk Insurance Company, will provide liability coverage for Aetna, including errors and omissions, employment practices liability, and other related coverages. Aetna previously had captive insurance operations in Bermuda.

“This homecoming is great news,” said Malloy.

“Aetna’s commitment in establishing this important subsidiary in its home state speaks to the confidence that business and industry has in Connecticut to grow their operations,” said Malloy. “We have the skilled workforce to meet the needs of this emerging industry and the regulatory climate to properly oversee them.”

Malloy said Connecticut’s 2011 comprehensive jobs legislation modernized the state’s captive insurer statutes, clearing the way for the state to begin licensing these specialty insurers.

Once an alternative to the commercial insurance market, captives have evolved into strategic financial vehicles used for many different enterprises, such as manufacturing and health care, the governor said in his announcement.