FOR IMMEDIATE RELEASE
DEPARTMENT ANNOUNCES LICENSING OF CAPTIVE INSURANCE COMPANY FOR OMNICOM GROUP INC.
Superintendent of Insurance Gregory V. Serio today announced that the State Insurance Department has licensed Haversine Insurance Company as a captive insurance company in New York insuring the risks of Omnicom Group Inc. Captives traditionally insure part of a corporations own risk as a component of their risk management strategy. In view of the recent contraction of the commercial insurance market, the formation of captives is a valuable and more flexible option for companies in managing their insurance needs.
"The Captive Law, signed by Governor Pataki in 1997, provides businesses with a solution to manage their insurance needs and better manage their risk management strategies," said Serio. " New York State is committed to continuing to meet the changing needs of business and as the creation of captives becomes a more viable solution for companies like Omnicom Group to manage their own risk New York State will continue to be a solid choice."
Randall J. Weisenburger, Chief Financial Officer of Omnicom said, "the New York State Insurance Department made the approval and registration process streamlined and user-friendly, allowing Omnicom to gain greater control, improve cost efficiencies and flexibility in managing our risk management process. This is especially important in the post 9/11 environment we live in. We are also pleased to be supporting New York State at the same time.
Omnicom Group Inc., is the eleventh New York business in a growing number of companies which are taking advantage of the Captive Law signed by Governor George E. Pataki in 1997 that permits captives to become licensed in New York State. In March of last year, under the leadership of Governor Pataki, legislation S.6591 was introduced by the Department to allow a wider range of businesses the opportunity to utilize captive insurance companies.
Prior to 1997, captives were not permitted in New York and had been headquartered in a small number of states or off-shore in jurisdictions such as Bermuda. With the passage of the Governors Captive program bill in 1997 and the recent creation of the Captive Group at the Insurance Department, businesses are now choosing New York State as an on-shore location for innovative alternative insurance programs such as captives.
Omnicom Group Inc. is a strategic holding company that manages a portfolio of global market leaders. The companies operate in the disciplines of advertising, marketing services, specialty communications, interactive/digital media and media buying services. More information about Omnicom Group Inc. is available at www.omnicomgroup.com.
All information necessary to become licensed as a captive is available by calling the Departments captive group toll-free at 1-866-NYSCAPTives or by visiting its Web site at www.nycaptives.com. Companies can quickly download the licensing forms as well as a copy of the law from the site. The approval process for licensing in a captive insurer is estimated to be only 30 days.