Delaware Leads Q4 Captive Formations, but Global Numbers Decrease

Key Takeaways

• Global captives fell 54 in Q4 2025
• Delaware added 14 new captives, led by Risk Management Advisors
• CIC Services re‑domiciled pure captives to Utah cells
• Guernsey and Luxembourg led European captive formations
• Licences revoked outpaced issuances for first time since 2022

Summary

The fourth quarter of 2025 saw a net decline in the global captive insurance market, with 85 new licences issued against 139 revocations, resulting in a loss of 54 active captives. Delaware remained the top U.S. domicile, adding 14 new captives—most of them formed by Risk Management Advisors. CIC Services shifted several pure captives to a Utah cell structure, while Guernsey and Luxembourg dominated new European activity. The mixed results end a streak of four quarters of net growth.

Pulse Analysis

The captive insurance sector entered 2025’s final quarter with a surprising reversal: more licences were surrendered than issued, erasing the growth momentum built over the previous year. Analysts attribute the dip to heightened regulatory scrutiny, rising capital costs, and a cautious corporate appetite for alternative risk financing amid volatile markets. While the net loss of 54 active captives may appear modest, it marks a pivotal shift that could accelerate consolidation among service providers and prompt jurisdictions to refine incentive packages.

Delaware continued to dominate U.S. captive formations, recording 14 new entities, a majority backed by Risk Management Advisors. This concentration underscores Delaware’s entrenched infrastructure, tax advantages, and streamlined approval processes that still attract sophisticated risk‑management firms. Meanwhile, CIC Services’ strategic re‑domiciling of pure captives into Utah’s cell structure highlights a growing trend toward flexible, multi‑entity frameworks that offer operational efficiency and regulatory benefits. Such moves signal that captives are increasingly leveraging jurisdictional nuances to optimize capital deployment.

Across the Atlantic, Guernsey and Luxembourg emerged as the primary hubs for new European captives, reflecting their robust legal regimes and favorable tax environments. Their leadership suggests that European insurers are seeking diversification beyond traditional markets, capitalizing on the islands’ expertise in specialty lines and regulatory certainty. Looking ahead, the industry may witness a recalibration of domicile competition, with jurisdictions vying for market share through tailored legislative reforms and value‑added services, while captive owners prioritize resilience and adaptability in an uncertain economic landscape.