FLORHAM PARK – New Jersey Department of Banking and Insurance (NJDOBI) Commissioner Ken Kobylowski today announced that the Department has approved Lumerica Insurance Company, a subsidiary of BASF Americas Corporation, to operate as a captive insurer in New Jersey. The Florham Park company’s principal business is to insure BASF’s North American property and excess liability exposures. The company was originally domesticated in Vermont in 2005 and this year redomesticated to the Garden State.
“The Christie Administration continues to grow a competitive captive insurance marketplace,” said Department of Banking and Insurance Commissioner Ken Kobylowski. “I am very pleased that a company of BASF’s caliber has chosen to redomesticate an important part of its insurance services operation to our state.”
“BASF appreciates the help and cooperation of NJDOBI in our efforts to move Lumerica to New Jersey,” said Robert Smith, Vice President of Tax, Insurance and Real Estate for BASF in North America. “BASF recently opened a new North American headquarters in Florham Park, so having Lumerica operate in New Jersey further demonstrates our commitment to the Garden State.”
Last fall, the Department hosted a Captive Insurance Summit that helped companies planning to form captives become more familiar with the State’s regulations and application process. The Summit brought captives industry experts together to discuss emerging trends and issues. That effort paid off as more captives are poised to form or redomesticate in New Jersey this year.
In February 2011, Governor Christie signed the Captive Insurers Act, P.L. 2011, c.25, which allows for the formation of captive insurance companies in New Jersey. The Department could not previously approve their operation in New Jersey. Captive insurance companies are insurance firms established with the specific objective of financing risks emanating from their parent group or groups.
Since the law took effect, the Department has approved the formation of eight captive insurance companies and there are currently many more potential captive insurance company formations in various stages of approval in New Jersey.
“Our growing captives industry is already represented by firms providing services to the shipping, communications and healthcare industries,” said Kobylowski. “Today’s new captive provides insurance services to a firm that sells products to nearly every industry sector found in New Jersey’s vibrant economy. I am happy to welcome BASF’s Lumerica to our expanding captive insurance market.”
For more information on captive insurer formation, call Crosby Sherman, Chief of Captive Insurance at 609-292-5350, ext. 50503 or go online to: www.state.nj.us/dobi/division_insurance/captive/.