Charter Communications continued to prove its commitment to Connecticut, agreeing to relocate its captive insurance operation in the state, according to a statement from Gov. Dannel Malloy.
Earlier this week Charter announced plans to build a new 15-story, 500,000-square-foot headquarters building in Stamford, Conn. Construction on that facility is expected to begin early next year and the company has pledged to add 1,100 new corporate jobs in the state over time. In return, Charter will receive a $10 million loan from the state and could receive more than $10 million in tax credits.
RELATED: Charter CFO calls the company 'strategically complete'
“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,” Gov. 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.”
Charter’s captive insurance operations, Spectrum Communications Indemnity, Inc., is the largest of 15 captives licensed in Connecticut and will provide coverage for Charter’s workers compensation, auto liability, general liability and employment practices liability. Regulated by the state Insurance Dept., captive insurance companies are usually wholly owned and controlled by a parent company or association, and operate to insure the parent’s own risks.
“We are delighted that Charter has chosen Connecticut to grow its captive insurance operations,” Connecticut Insurance Department Commissioner Katharine Wade said in a statement. “This gives the corporation the critical tools it needs to manage its costs and reinvest in its employees and overall operations. Connecticut provides companies of all sizes with a collaborative, prudent regulatory environment aimed at creating sustainable captives to insure and manage their risks for the long term.”
READ MORE: IBEW Turns Up Heat in Charter Strike
The Insurance Department initially licensed the captive insurer in December 2016 and Charter subsequently merged all its captive insurance operations as of May 31, 2017. As a result, the combined assets were approximately $400 million following the merger. Annual premiums are anticipated to be approximately $157 million for the current fiscal year.
“As a Stamford-headquartered business, Charter is pleased to bring our insurance captives to the state of Connecticut,” Charter EVP of government affairs Catherine Bohigian said in a statement. “As Charter continues to grow in Connecticut, we look forward to furthering economic opportunities in the state.”
LEARN MORE: NYC TV Week is coming up, starting with the 27th annual Broadcasting & CableHall of Fame on Monday, Oct. 16. For more about #NYCTVWK, click here.