For Immediate Release: March 21, 2014
Cary-Based Company Forms Captive Insurer in N.C.
N.C. Department of Insurance issues its first captive insurance license of 2014
RALEIGH -- Insurance Commissioner Wayne Goodwin is proud to announce that one of the nation's largest convenience store chains has formed a captive insurance company in North Carolina.
The Pantry, Inc., based in Cary, N.C., has formed Cellarium Insurance Company, Inc., a pure captive insurance company licensed by the N.C. Department of Insurance on Feb. 28. This is the first captive insurer to become licensed in North Carolina in 2014 and the first in North Carolina to be owned by a publicly-traded corporation. As of March 13, 2014, The Pantry operated 1,537 convenience stores in thirteen states, including its primary operating banner Kangaroo Express.
Cellarium Insurance Company is managed by Beecher Carlson Insurance Services, LLC, and joins four other captive insurers that have formed in North Carolina since the state's Captive Insurance Act went into effect in late October 2013.
"Prior to having this captive insurance law, North Carolina businesses would have had to go to other states or jurisdictions to form a captive insurance company," Goodwin said. "I am proud that companies like The Pantry are realizing the benefits of forming captives here in North Carolina. We are dedicated to helping companies meet their insurance needs and attracting new business to our state."
Captive insurance is typically a form of self-insurance in which an insurance company is formed to insure the risks of the parent company and its affiliates. Captives are used as a risk management tool to meet or assist in meeting the needs of the captive's owners; they do not offer insurance to the public.
"As a founding participant in North Carolina's new captive program, we are looking forward to the partnership with NCDOI," said Lindsay Cunningham, vice president of risk management at The Pantry. "We have been fortunate to experience a very smooth and receptive transition with NCDOI."
Captives create jobs for those who form and perform services for the captive, and they generate premium tax revenues for the state or jurisdiction in which they are established.
To learn more about captives and North Carolina's captive insurance law, visit www.nccaptives.com.