A New York grocery chain has set up Connecticut’s newest captive insurance subsidiary, Gov. Dannel Malloy’s office announced.
The Red Apple Group received a license this month from the state’s Insurance Department, making it the third company to throw its hat into the nascent industry.
The company operates Red Apple gas stations and Gristedes Foods.
A 2011 state law paved the way for the creation of captive insurance companies, which are subsidiaries owned by a parent company designed to insure the parent company’s risk.
The state’s first two captive insurance subsidiaries are owned by New Britain’s Stanley Black & Decker and Stamford’s Thomson Reuters. Both companies relocated their subsidiaries from other states.
Thomas Hodson, president of the Connecticut Captive Insurance Association, explained in August why some companies are choosing captive insurance over traditional insurance.
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