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The new subsidiary is also headquartered in Stamford and recently received a license from the Connecticut Insurance Department, Gov. Dannel P. Malloy announced Friday. The captive insurance company is "wholly owned by the parent company to insure the risks of the parent and its subsidiaries," according to a release.
Frontier Services Corporation is the state’s fourth licensed captive insurance company since the Malloy’s 2011 comprehensive jobs legislation "cleared the way for the state to begin licensing these specialty insurers," representatives said.
Captive insurance companies are managed by specialty firms that employ a range of financial and legal professionals, according to the release.
“Giving employers the tools they need to manage their costs and re-invest in their employees and products is a commitment we have made from day one,” Governor Malloy said. “These specialty insurers are just one example of the steps my Administration has taken to support business, encourage competition and create jobs. We welcome Frontier Communications, a company with deep roots in Connecticut, to this growth sector.”
“Captive insurance has proven to be an effective cost-management tool for employers and many states have enacted laws to attract their business. However, not every state has the skilled insurance workforce expertise or the regulatory expertise that we have here in the Insurance Capital,” Insurance Commissioner Thomas Leonardi said. “Governor Malloy’s vision and commitment to grow the industry have been instrumental in making sure our laws and regulations continue to attract this growing sector."
The company is expanding its footprint in Connecticut following the recent announcement that it was acquiring AT&T’s wireline business and statewide fiber network in Connecticut.
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