"Building long-term sustainable relationships with clients founded upon partnership and understanding" - Shaun Brook, Practice Leader, Indurance Management
"Building long-term sustainable relationships with clients founded upon partnership and understanding" - Shaun Brook, Practice Leader, Indurance Management
Bermuda is a group of islands in the western Atlantic about 600 miles east of South Carolina and approximately 750 miles southeast of New York City. The main islands, connected with bridges or causeways, are about 22 miles long with an average width of between one half and one mile. The population of Bermuda is approximately 60,000.
Bermuda is the oldest and largest British Dependent Territory with effective self-government. The two industries that support the island's economy are tourism and international business, the latter dominated by the insurance sector.
The Bermuda Government has historically been very supportive of the island's insurance industry. It is a true partnership that has proved highly successful over the years.
Interested in Setting Up a Captive in Bermuda?Call Robert Eastham +1 441 299 6811 or email Rob on robert.eastham@kane-group.com
For more information visit: |
Government
British Crown Colony with effective self-government.
Legal
Common law based closely on the English legal system.
Taxation
For foreign owned, exempt companies in Bermuda, there is no taxation on profits, dividends or income nor is there any capital gains tax or gift tax.
Currency Control
Companies incorporated in Bermuda are not subject to any form of currency or monetary control. They may trade and maintain bank accounts in any currency or country and are completely free to remit, repatriate or otherwise transfer funds.
Stamp Duty
In February 1990, stamp duties payable by insurers and other exempted companies were abolished.
Regulatory Environment
All insurance companies in Bermuda are regulated under the Insurance Act, 1978 and related regulations and the Bermuda Government's policy states that the insurance industry should be largely self regulated within the framework of the Act.
Multi Licence System
Ranging from single parent captive writing own risk only to excess liability and property catastrophe reinsurers.
Principal Representative
Every insurer is required to maintain a principal office in Bermuda and also appoint a resident "Principal Representative", a position normally filled by the captive manager.
Auditors
Every insurer is required to appoint an independent, approved firm of auditors to report on Statutory Financial Statements and returns.
Minimum Paid Up Capital
Property and casualty insurers: USD 120,000 to USD 1,000,000
Life only insurers: USD 120,000 to USD 500,000
Property, casualty and life insurers: USD 240,000 to USD 1,500,000
Minimum Capital and Surplus
A Bermuda Insurer is required to maintain minimum capital and surplus representing the minimum solvency margin benchmarks.
General Business
Statutory Capital and Surplus must exceed the greater of:
|
Class 1 |
Class 2 |
Class 3 |
Class 3A |
Class 3B |
SPI |
Minimum Captital and Surplus |
120,000 |
120,000 |
1,000,000 |
1,000,000 |
1,000,000 |
1 |
Premium Test First $6m of Net Premium Written and |
20%. |
20% |
20% |
20% |
20% |
N/A |
Excess of $6m Net Premiums Written |
10% |
10% |
15% |
15% |
15% |
N/A |
Loss Reserves Test (net reserves) |
10% |
10% |
15% |
15% |
15% |
N/A |
Long Term Business
Statutory Capital and Surplus must exceed the greater of:
|
Class A |
Class B |
Class C |
Class D |
Class E |
Minimum Captital and Surplus |
120,000 |
250,000 |
500,000 |
4,000,000 |
8,000,000 |
Assests (Percentage of Assets) |
0.5%. |
1.0% |
1.5% |
|
|
For Class D First $250m of assets and |
|
|
|
2.0% |
|
Excess of $250m |
|
|
|
1.5% |
|
For Class E First $500m of assests and |
|
|
|
|
2.0% |
Excess of $500m |
|
|
|
|
1.5% |
Captive Costs
These will vary according to the size and complexity of the company and the following are intended as guidelines only:
|
|
|
Range |
Low |
High |
Application Costs (non recurring regulatory and legal) |
USD 500 |
USD 100,000 |
Annual Operating Costs (regulatory) |
USD 3,000 |
USD 50,000 |
In addition to the costs specified above, there will be annual management fees, directors' fees, annual auditors' charges as well as investment management and consultants' fees.
The information in this document is intended as a general overview of jurisdictional requirements at the time of publication. It is not to be construed as legal advice or opinion and persons reading this publication are advised to obtain independent legal, accounting or tax advice on this regard.