For the sixth straight year, Risk Management presents its Annual Captive Domicile Review. This year, we break down the top 25 captive domiciles, ranked by their number of active captives.

For complete coverage, see also "On the Right Track: Reviewing Your Captive's Performance" and "15 Things to Do Before Forming a Captive."

1. Bermuda - 885 
Retaining its perennial top spot, Bermuda gained 42 captives in 2009.

2. Cayman Islands - 764 
The Cayman Islands is the world's leading domicile for health care captives.

3. Vermont - 560
The number one U.S. domicile added 39 captives last year and is the captive home for 42 of the Fortune 100.

4. Guernsey - 351
The largest European domicile is also the leader in cell captives, having introduced both protected and incorporated cell companies.

5. British Virgin Islands - 285 
In February, BVI introduced a new insurance act in an effort to increase transparency and encourage growth.

6. Barbados - 225
Favorable tax treaties have made this Caribbean island the most popular domicile for Canadian captives.

7. Turks and Caicos Islands - 215
TCI is the leading domicile for niche hybrid reinsurance companies (formerly known as "producer-owned reinsurance companies" or "PORCs").

8. Luxembourg - 201
Luxembourg is the largest captive reinsurance domicile in the EU and the world's second largest investment fund center after the United States.

9. Anguilla - 200
Anguilla strengthened its licensing standards in 2010 with new guidelines for "fit and proper" individuals and "politically exposed persons."

10. Hawai'i - 162
A new law signed in March allows for incorporated cell captives and reduces the time and costs associated with state examinations.

11. South Carolina - 155
Southwest Airlines' announcement that it will begin servicing Charleston, the state's captive insurance center, will increase accessibility to the domicile.

12. Isle of Man - 150 
In an effort to increase its captive business, the Isle of Man is looking to market itself as the domicile of choice for international employee benefits.

13. Utah - 149
Utah saw a surge in its captive numbers in the latter part of 2009, with 28 new captive formations in December alone.

14. Nevada - 125
One of six states (along with VT, HI, UT, AZ and DE) with new captive insurance regulators, Nevada has seen a spike in captive applications in 2010.

15. District of Columbia - 120
As health care costs continue to rise, like many domiciles, D.C. has seen an influx of medical and health care-related captives.

16. Ireland (Dublin) - 114 
Dublin's captive managers have been taking a particularly active role in the development of Solvency II and how it relates to the captive industry.

17. Kentucky - 103
Kentucky has seen steady growth recently, licensing 37 captives in each of the last two years.

18. Arizona - 99
For the first time in its eight-year history as a domicile, Arizona saw its captive numbers decrease in 2009.

19. Nevis - 65
Along with its sister island, St. Kitts, Nevis is looking to amend its regulations to allow captives to insure risks on behalf of parent companies and affiliates.

20. Singapore - 63
More than half of Singapore's captives are owned by Australian companies, but it is fending off increasing competition from Labuan and New Zealand.

21. Sweden - 50
Sweden's captive business has remained stable over the last few years and is home to predominantly Swedish companies.

22. Delaware - 48 
Delaware's captive numbers grew 20% in 2009 and the domicile added the world's first serial captive.

23. Montana - 47
Montana added 16 captives in 2009, twice as many as the previous year, and recently allowed its captives to write surety and marine insurance.

24. New York - 47
In June, New York-based WTC Captive Insurance Co. agreed to a $700 million settlement with workers for injuries sustained during cleanup efforts after 9/11.

25. Switzerland - 42
Captives in Switzerland must meet the same regulatory requirements as commercial insurers or reinsurers — there is no captive-specific legislation.

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The above article is reprinted from the August 2010 on-line edition of Risk Management Magazine.