numbers in terms of captive formations, after this year eclipsing the state's 1995 figures with months left to go.

After the addition of 20 (17 for all of 1995) new captives this year, he said during the 11th Annual Vermont Captive Insurance Association's annual conference in Burlington, "We have a ways to go before we catch Bermuda. But that's the next step.'' Bermuda had 90 captive formations last year and a year-end total of 1,401. A further 35 were incorporated during the first six months of this year. By comparison, the Cayman Islands was the closest with 49 last year, totaling 390 by the end of the year. They've had a further 19 this year.

Vermont's 17 incorporations last year brought their year-end total to 328, together with a further 16 in the first six months of 1996, according to captive manager, Johnson & Higgins.

Business Insurance (BI) reported that Governor Dean also stressed that Vermont cannot rest on its laurels.

He said, "We always have to be competitive. We lowered our tax rate twice in four years because we always have to compete.'' But he also said that he believes that beyond the premium tax rate, captive parents are interested in competitive, but not lax, regulation -- something Vermont had demonstrated an ability to deliver.