Charter relocating insurance division to Connecticut
Updated 4:28 pm, Wednesday, October 4, 2017
STAMFORD — Charter Communications would further expand its Connecticut footprint by locating its entire captive insurance operations in the state, Governor Dannel P. Malloy announced Wednesday.
“This is a clear example of a Connecticut company that understands that Connecticut is a great place to do business — they are growing their corporate headquarters and adding hundreds of new, good-paying jobs here,” Malloy said in a statement. “And now, by establishing their entire captive insurance operations in Connecticut, they are further committing their company to our state. We value Charter’s confidence and look forward to their continued success.”
The announcement comes a day after Charter announced it planned to relocate its headquarters from 400 Atlantic St. to a yet-to-be constructed 500,000-square-foot building in the Gateway Harbor Point complex at 406 Washington Blvd. Unlike an aid package potentially worth $20 million to support the headquarters move, the country’s second-largest cable company would not receive state subsidies for the insurance business, according to state Department of Economic and Community Development officials.
“As a Stamford-headquartered business, Charter is pleased to bring our insurance captives to the state of Connecticut,” Catherine Bohigian, Charter’s executive vice president of government affairs, said in a statement. “As Charter continues to grow in Connecticut, we look forward to furthering economic opportunities in the state.”
A Charter spokesman declined to comment on the number of insurance jobs that would be based in Connecticut or say whether they would be based at the company’s current or planned headquarters.
A captive insurance company is wholly owned and controlled by a parent company or association and operates to insure the parent’s own risks. Captives are licensed and monitored by the state Insurance Department.
Charter’s captive business, Spectrum Communications Indemnity Inc., represents one of the 15 largest of its type licensed in Connecticut and will provide coverage for Charter’s workers compensation and auto, employment practices and general liabilities, according to state officials.
The Insurance Department licensed the captive insurer in December 2016 and Charter merged all its captive insurance operations by May 31, according to the state. Combined assets totaled approximately $400 million following the merger. Annual premiums are anticipated to reach approximately $157 million for the current fiscal year.
“I think one of the reasons Charter’s captive insurance business came here is because our state’s insurance department has such depth and knowledge in this field and provides a high quality of service,” Catherine Smith, the state’s economic development commissioner, said in an interview Wednesday. “The department’s experience and caliber helped to make the decision possible.”
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