The Pantry, a US-based convenience store chain, has established a pure captive company Cellarium Insurance, following a license granted by the North Carolina Department of Insurance.
North Carolina Department of Insurance commissioner Wayne Goodwin said this is the first captive insurer to become licensed in North Carolina in 2014 and the first in the state to be owned by a publicly-traded corporation.
Managed by Beecher Carlson Insurance Services, Cellarium Insurance Company 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.
Commenting on the new captive insurance entrant, Goodwin said, "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.
"We are dedicated to helping companies meet their insurance needs and attracting new business to our state."
Captive insurance is generally 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 fulfill or assist in meeting the needs of the captive’s owners; they do not offer insurance to the public.