Wilmington Trust, a leading provider of specialised management and fiduciary services to corporations worldwide, announced it has signed a definitive agreement to acquire Charleston Captive Management Company (CCMC), a captive insurance management company headquartered in Charleston, South Carolina.
CCMC provides a variety of administrative services that support the establishment and operation of captive insurance companies, also known as captives. These services include bookkeeping and regulatory reporting. The firm's expertise complements the entity management services that Wilmington Trust already provides to corporate clients.
"This acquisition broadens the service offerings of our corporate client services business line by giving us an established presence in a growing industry," said Ted T. Cecala, chairman and CEO of Wilmington Trust. "It advances our strategy to grow our fee-based businesses and further diversifies our well-rounded revenue streams."
Founded in 2001, Charleston Captive Management Company was the first captive management service provider to operate in South Carolina, which has developed into a leading U.S. jurisdiction for captives. Popular jurisdictions for captives outside the United States include Bermuda, the Cayman Islands, and Ireland.
"Captive insurance management is a logical extension of our existing entity management capabilities," said William J. Farrell II, executive vice president and head of Wilmington Trust's Corporate Client Services business. "We already operate in many of the captive industry's key jurisdictions and we have the necessary infrastructure to effectively leverage the strengths of both organisations."
Wilmington Trust's status as an independent financial institution was a decisive factor in bringing the firms together, said John J. O'Brien, CEO of Charleston Captive Management Company. "Independence is an important attribute for an organization that manages captive insurance companies," Mr. O'Brien said. "It has always been a competitive distinction for us, as it has for Wilmington Trust. I'm confident that the captive insurance marketplace will embrace our collective expertise and capabilities fully."
CCMC's five staff members will remain with the company, whose services will be marketed as Wilmington Trust Captive Management Services. CCMC's revenue and expenses will be consolidated into Wilmington Trust's financial statements. It is anticipated that the acquisition will have a neutral effect on Wilmington Trust's earnings in 2005. Terms of the transaction, which is expected to be finalized during the third quarter of 2005, were not disclosed.