NH Division of Economic Development Says at Least 23 Massachusetts Insurance Companies Would Save Millions Annually by Redomesticating to New Hampshire

Concord, NH, June 30, 2011 --(PR.com)-- In this current economic climate, every penny counts, and revenue-conscious insurance companies are looking for new ways to hold down costs and create a positive impact on their income statements. Trimming office supply budgets and reducing travel expenditures can make a small dent, but there's an even bigger opportunity awaiting companies looking to cut seven figures or more from their expenses.

In Massachusetts alone, the NH Division of Economic Development has recently determined that at least 23 MA-domiciled insurance companies would save millions of dollars each year, simply by redomesticating to New Hampshire.

"Redomestication is a sound business move, and one that can be of great benefit to insurance companies. We have also seen interested companies redomesticate some of their smaller operations," said Michael Bergeron, Business Development Manager for the Division. "Companies who have been in their state many years find it politically difficult to redomesticate, but often have strong interest in redomesticating recently acquired companies and small companies under their corporate umbrella,” said Bergeron.

Bergeron identified three specific opportunities for insurance companies looking to reduce their business expenditures:

1. Insurance Premium Tax Savings

At 2.0%, Massachusetts is tied for 21st in the nation for its premium tax rate. On the basis of these taxes alone, life and property/casualty insurance companies domiciled in Massachusetts must pay retaliatory taxes in as many as 20 states in which they write policies. If domiciled in NH, that number drops to eight. For at least 23 insurance companies in Massachusetts, this difference alone can translate into millions of dollars in tax savings every year.

Bergeron notes that his department often assists insurance companies in making specific determinations of their potential savings. "Presidents, CFOs, and general counsel appreciate the level of detail we provide directly and confidentially to back up these assertions."

2. Tax Credits and Incentives

In addition to New Hampshire having the seventh overall lowest tax burden in the U.S., Economic Revitalization Zone credits are available for NH-domiciled companies, which can total up to $200,000 ($40,000 per year for five years). As another example of tax credits available in the state, the Coos County Job Creation Tax Credit awards a $1,000 credit for each new job created in NH and paying twice the minimum wage.

3. Lower cost real estate

New Hampshire also offers lower cost office space for lease close to the Manchester/Boston regional Airport, interstate highways and Boston metro market.

On top of the financial advantages, companies domiciled in New Hampshire also benefit from the New Hampshire Insurance Department’s (NHID) friendly regulatory environment, which has some of the "best and the brightest" regulators in the nation, according to J. Bruce Ferguson, SVP of State Relations for the American Council of Life Insurers.

"(The NHID) is seen as a reasonable and respected regulator throughout the industry, by trade groups, other states' regulators, and the companies themselves," Bergeron adds. "They are highly responsive, don't look to impose unreasonable regulations, and don't drag out the time it takes to conduct audits - qualities that any insurance company would appreciate.”

Because of the confidential and sensitive nature of Redomestication inquiries, the Division won't publicly name the Massachusetts-domiciled life and property/casualty insurance companies that could save millions in taxes. Instead, the Division encourages any MA-based insurance company to contact Bergeron directly at 603-271-2591, ext. 117 to learn more about the benefits of New Hampshire.

About Redomesticate NH
A multi-year partnership between the NH Division of Economic Development and the NH Insurance Department, the Redomesticate NH initiative educates decision makers for life, property, and casualty insurance companies about the benefits of domiciling their companies in New Hampshire. Centered around a reduction of the premium tax to 1.25%, the state also offers insurance companies a highly-educated workforce, move-in-ready commercial real estate, responsive regulators, a high quality of life, and an overall business-friendly environment. Learn more at http://www.RedomesticateNH.com, on Facebook at http://Facebook.com/RedomesticateNH, and on Twitter at http://twitter.com/RedomesticateNH.

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