American International Group has established a sponsored captive insurance company in Vermont to protect its U.S. clients' non-traditional risk financing vehicles.American International Group has established a sponsored captive insurance company in Vermont to protect its U.S. clients' non-traditional risk financing vehicles.

        AIG said the sponsored captive-Vermont National Union Fire Insurance Company was formed in response to the current economic and insurance market environment and the growing demand for non-traditional financing programs. The sponsored captive provides risk managers with a means of handling insurance programs and managing increased retentions.

    A sponsored captive is similar to a rent-a-captive, offering various policyholders a single facility for risk protection.The sponsored captive is managed byAIG's captive management arm-AIG Insurance Management Services, and is registered in Burlington.

Source: Business Insurance, 2002-06-21