RALEIGH, N.C. -- North Carolina Insurance Commissioner Wayne Goodwin has announced that one of the largest convenience store chains in the country has formed a captive insurance company in the state. The Pantry Inc., Cary, N.C, has formed Cellarium Insurance Co. Inc., a pure captive insurance company licensed by the North Carolina Department of Insurance (NC DOI) on Feb. 28.
This is the first captive insurer to become licensed in North Carolina in 2014 and the first in North Carolina to be owned by a publicly traded corporation. As of March 13, 2014, The Pantry operated 1,537 c-stores in 13 states, primarily under its Kangaroo Express banner.
Captive insurance is typically a type of self-insurance in which an insurance company is formed to insure the risks of the parent company and its affiliates. Captives are used as a risk management tool to meet or assist in meeting the needs of the captive's owners; they do not offer insurance to the public.
"As a founding participant in North Carolina's new captive program, we are looking forward to the partnership with the NC DOI," said Lindsay Cunningham, vice president of risk management at The Pantry. "We have been fortunate to experience a very smooth and receptive transition with the NC DOI."
Cellarium is managed by Beecher Carlson Insurance Services LLC, and it joins four other captive insurers that have formed in North Carolina since the state's Captive Insurance Act went into effect in late Oct. 2013.
"Prior to having this captive insurance law, North Carolina businesses would have had to go to other states or jurisdictions to form a captive insurance company," Goodwin said. "I am proud that companies like The Pantry are realizing the benefits of forming captives here in North Carolina. We are dedicated to helping companies meet their insurance needs and attracting new business to our state."
Captives create jobs for those who form and perform services for the captive, and they generate premium tax revenues for the state or jurisdiction in which they are established.
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