The state has attracted its second captive insurer.
Stanley Black & Decker, based in New Britain, is moving its captive insurance subsidiary, SBD Insurance Inc., from Vermont to Connecticut, the governor's office announced Thursday afternoon.
A captive insurer is a self-owned subsidiary of a large company that manages the parent company's risks. Gov. Dannel P. Malloy introduced changes in state insurance regulations of captive insurers last year and the state is offering a $7,500 tax credit to attract them.
"Once established, captives provide revenue to the state in the form of premium taxes and can potentially boost tourism because captives must hold their annual meetings in the state in which they are based," the governor's office said in a statement In announcing the Stanley move.
Craig Douglas, vice president and treasurer of Stanley Black & Decker, said in a prepared statement: "We are pleased to be able to take advantage of Connecticut's recently revised captive legislation. By moving our existing captive from Vermont to our home state we create further synergies and cost savings for the company."
Thomson Reuters moved its captive insurance company from Delaware to Connecticut during the summer, making it the state's first captive insurer.Copyright © 2014, The Baltimore Sun