Thomson Reuters relocated its captive insurance company from Delaware to Connecticut, making it the state's first captive insurer.

Gov. Dannel P. Malloy introduced changes in state insurance regulations of captive insurers last year and the state is offering a $7,500 tax credit to attract captive insurers.

A captive insurer is a self-owned subsidiary of a large company that manages the parent company's risks.

New York-based data-and-information conglomerate Thomson Reuters, known for its media company, has a captive insurer named Thomson Reuters Risk Management Inc., TRRMI, which was licensed Tuesday to do business in the state.

"We're very pleased to have formed the first Connecticut captive insurance company," said Kevan Parekh, treasurer of Thomson Reuters. "Connecticut is a logical place for our captive as we have a significant corporate presence in Stamford."

TRRMI is now located in Stamford. The process to move the insurer from Delaware took about six months from start to finish, according to Michael Warren, vice president of risk management at Thomson Reuters.

TRRMI insures Thomson Reuters' workers' compensation, general liability, auto liability, property, terrorism, errors and omission and personal accident-and-travel risks in the U.S.

Captive insurers generally employ few people, if any at all, because the work can be outsourced to professionals who specialize in the captive industry. The move by TRRMI doesn't mean that Connecticut will gain a workforce from Delaware. It will, however, result in premium-tax revenue for the state. Attracting a captive insurance company also can result in a bit of tourism dollars as out-of-state board members for the captive insurer come to annual meetings.

The premium tax rate on a captive insurer is a sliding scale, starting at 0.38 percent for the first $20 million in premium. Warren said TRRMI has less than $10 million in premium annually.

A captive that earns $10 million in premium annually would generate $38,000 in premium taxes each year, before the $7,500 tax credit which is offered for the first taxable year.

If Connecticut is able to build a broad base of captive insurers, it is possible the state could benefit by the insurance work outsourced to actuaries, lawyers, auditors and financial analysts who serve the parent company to manage captive's risks.

In the case of TRRMI, much of the work is outsourced to Marsh Captive Solutions, which advised Thomson Reuters on moving its captive to Connecticut.

"Marsh Captive Solutions has three full-time employees in Connecticut and also has an arm out of Vermont that manages some of the day-to-day activities of Connecticut captives," said Michael Serricchio, a senior vice president with Marsh Captive Solutions who is based in Norwalk. "And the critical point is, until we have a critical mass of captives that we manage, we'll manage those off site. And then when we have a critical mass of captive owners in the state, we'll actually form a new office in the state."

This could be the first of other captives that relocate to the Nutmeg State.

"We are certainly involved in discussions on additional transactions," said Ted Augustinos, a Hartford-based partner of the law firm Edwards, Wildman, Palmer, LLP, which acted as legal adviser to Thomson Reuters' move here.

The special legislative session in October 2011 included revisions to Connecticut's 2008 captive insurance law. The changes expanded the types of insurance captives that are allowed to operate in the state and established a special regulatory unit within the Insurance Department to oversee regulation of these new companies.

"Insurance is one of the most significant economic drivers of our state and there is no place better to grow the industry than the Insurance Capital," Malloy said. "The much-needed changes we made to outdated laws have done exactly what we intended — encourage and attract more business and revenue. I am proud to welcome TRRMI, and I am confident that because of the environment we have established in Connecticut, more captive insurance companies will put down roots here."

Insurance Department Commissioner Thomas B. Leonardi. "Through professional and consistent regulation, the Insurance Department will make certain that Connecticut-based captives will be noted for their quality and financial stability."