Frontier Communications, the Stamford-based telecom company that has a deal to buy AT&T’s wireline business in Connecticut, will locate its captive insurance unit at its Connecticut headquarters.
Captive insurance is basically a separate business with an insurance license but rather than selling coverage to the public, it takes on risk for the company that owns it.
The announcement that Frontier Services Corp. will be in Connecticut, made by Gov. Dannel P. Malloy, does not mean a significant number of direct new jobs. But it advances the state’s goal of attracting captive insurers, in part to help the parent companies. A new state law enabling captive licensing was adopted in 2011 and a trade group formed.
Frontier is the state’s fourth captive insurance company.
“Giving employers the tools they need to manage their costs and re-invest in their employees and products is a commitment we have made from day one,” Malloy said in a written statement.
Frontier, with $5 billion in annual revenue, operates in 27 states and has 200 people at its headquarters. The AT&T deal, which requires regulatory approval, would add 2,700 Connecticut employees.