the Internal Revenue Code. Over 75% of the world’s captives are associated with the United States because these insurance arrangements are encouraged under the Internal Revenue Code. Because captives are sophisticated tax structures (having been the subject of dozens of cases and rulings by the IRS, the Tax Court and various appellate courts over the past 70 years) captive owners often engage tax professionals in addition to captive managers that simply provide administrative services. Micro captives Over 90 percent of Fortune 1000 companies and many successful middle market businesses have captives. Over half of all property and casualty premiums that are written, are written through captives. The Section 831(b) or "small" P&C captive, also known as a "micro captive" is used by midsize companies looking for cost-effective ways to transfer risk. Captive experts say an 831(b) introduces middle market companies to alternative risk transfer and its benefits, providing this class of insurance buyers a valuable cost-saving tool long utilized by Fortune 1000 companies. The Section 831(b) captive or “small” property and casualty captive is one of the most popular choices for middle market companies. Sheltering income from taxes Captive insurance policies can be "designed so that the risks they insure are so unlikely that the captives will never pay out a claim and all those premiums will go back to the business owners or their heirs with little or no tax." Main captive domiciles Not listed above by Business Insurance News is Montana with 150 captives as of December 2013 and Anguilla which has more than 300 captives as of December 2012. Delaware does not report. *2008 Updated stats. Source: Business Insurance News Captives 2008 **2008 Updated stats. Source: https://web.archive.org/web/20080821225209/http://www.captive.utah.gov/hotnews.html #2007 Updated stats. Source: LOFSA 2007 Annual Report See also Catastrophe bond Cell captive Reinsurance Reinsurance sidecar References Offshore finance Types of insurance