As part of a major commitment to the state of Connecticut, Charter Communications will locate its captive insurance operations in Hartford.
The news, trumpeted by Connecticut Governor Dannel Malloy, comes just a few days after the No. 2 cable operator in the U.S. pledged to keep its headquarters in Stamford, build a new 500,000-square-foot headquarters building and add 1,100 jobs in the state. In all, Charter has committed to $100 million in capital spending in Connecticut over the coming several years.
“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,” 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 company, Spectrum Communications Indemnity Inc., provides coverage for the cable operator’s employees, including workers' compensation, auto liability, general liability and employment practices liability.
Licensed by the state, captive insurance companies allow companies to meet regulatory insurance requirements, but ostensibly save money by underwriting their own risks.
Connecticut State Insurance Commissioner Katharine Wade told the Hartford Courant that the operation “gives the corporation the critical tools it needs to manage its costs and reinvest in its employees and overall operations."
As part of its dalliance with Connecticut, Charter will receive a 10-year, $10 million low-interest loan from the state Department of Economic and Community Development. The cable operators will also receive up to $10 million in tax credits.