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DELAWARE INSURANCE COMMISSIONER WILLIAMS ANNOUNCES ACQUISITION OF TWO NEW DELAWARE CAPTIVE INSURANCE COMPANIES

 DOVER, Del., Oct. 29 /PRNewswire/ -- Delaware Insurance Commissioner Donna Lee H. Williams announced today that she has approved the acquisition of two new captive insurance companies during the first fiscal quarter of 1994.
 Automatic Data Processing of Roseland, N.J., and Dell Computer, Inc. of Austin, Texas, are the first Delaware captives established since Delaware's General Assembly passed new captive legislation in 1988.
 Captives are owned by a parent company or industry group to provide insurance coverage when traditional coverage is difficult to obtain or over-priced from the viewpoint of the insured. According to Williams: "Captive insurance activity will continue to gain favor as an alternative risk management tool in the 1990s. Delaware, however, will continue to selectively target its market, focusing on well-capitalized captives such as those associated with Fortune 1000 companies." Today, Delaware is the domicile of choice for six captives, including the country's two largest association captives which provide coverage for the nuclear power industry. Other captives are currently in the formation or inquiry stage with the Insurance Department.
 In cooperation with the Insurance Department, business development efforts are being spearheaded by the Delaware State Chamber's Captive Committee and the Delaware Development Office. Formed in 1992, the Committee's activities have included marketing, organizational and regulatory support for Delaware's captive industry.
 With $2 billion in revenues, the ADP captive has received its Certificate of Authority to underwrite six lines of insurance with annual premiums in the $5 million or $6 million range. Future additional coverages could boost annual premiums by several multiples. Insurance broker Marsh McLennan will manage ADP's new Delaware captive.
 A forerunner in the direct marketing of high performance and notebook PCs, Dell Computer has received its Certificate of Authority and completed its organizational exam for its new Delaware property loss captive. Dell's captive will be managed by insurance broker Alexander & Alexander. A major captive manager, A&A also manages Harbour Insurance, another Delaware captive.
 The fact that both ADP and Dell Computer are Delaware corporations and employ in-state staff for Delaware Investment Holding Companies activities underscores their contributions to the state of Delaware. In the future, captive managers will be expected to manage their Delaware captives from offices located in Delaware.
 -0- 10/29/93
 /CONTACT: Michael Battaglia of the Delaware Insurance Commissioner's Office, 302-739-4251/


CO: Delaware Department of Insurance; Automatic Data Processing; Dell
 Computer, Inc. ST: Delaware, New Jersey, Texas IN: INS SU:


MP-MK -- PH032 -- 8652 10/29/93 15:49 EDT
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Publication:PR Newswire
Date:Oct 29, 1993
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