Bermuda Captive Insurance License

Key Features

A captive insurance company is an insurance company whose primary purpose is the financing of the risks of its owners:

  • Insurance cover is only available to the parent and affiliates of the captive
  • Its owners/participants are usually not insurance companies
  • It is a licensed insurance company and operates under a different regulatory system than commercial insurers
  • Insureds generally require less policyholder protection than the general public

Long-Term – Class A: A single-parent long-term captive insurance company underwriting only the long-term business risks of the owners of the insurance company and affiliates of the owners. Class A insurers are required to maintain minimum capital and surplus of $120,000.

Long-Term – Class B: Multi-owner long-term captives which are defined as long-term insurance companies owned by unrelated entities, provided that the captive underwrites only the long-term business risks of the owners and affiliates of the owners and/or risks related to or arising out of the business or operations of their owners and affiliates. A Class B license will also apply to single-parent and multi-owner long-term captives writing no more than 20 percent of net premiums from risks which are not related to or arising out of, the business or operations of their owners and affiliates. Class B insurers are required to maintain minimum capital and surplus of $250,000.

Long-Term – Class C: Long-term insurers and reinsurers with total assets of less than $250 million; and not registrable as a Class A or Class B insurer. Class C insurers are required to maintain minimum capital and surplus of $500,000.

Long-Term – Class D: Long-term insurers and reinsurers with total assets of $250 million or more, but less than $500 million; and not registrable as a Class A or Class B insurer. Class D insurers are required to maintain minimum capital and surplus of $4,000,000.

Long-Term – Class E: Long-term insurers and reinsurers with total assets of more than $500 million; and not registrable as a Class A or Class B insurer.

 

Legal Requirements

Requirements

Description

General

  • Corporate  vehicle permitted

Protected Cell Company (PCC)

  • Local physical office required

No

Share capital or equivalent

  • Minimum paid-up capital

USD 120,000 to USD 4,000,000

Directors

  • Minimum number

1

  • Corporate directorship allowed

Yes

  • Local director required

No

Shareholders

  • Minimum number

1

  • Corporate shareholders allowed

Yes

  • Local  shareholders required

No

Service Providers Required

  • Company Secretary

No

 

 Tax Treatment

There are no income, corporation or withholding taxes in Bermuda.

 

Duration to Set Up

3 months

 

Distinctive Benefits of Licence

  • Largest captive domicile
  • Robust yet flexible regulatory environment
  • 3rd largest insurance centre worldwide
  • Blue chip offshore financial centre
  • One stop shop – access to insurance and reinsurance markets
  • Professional infrastructure and quality of workplace
  • Legal System
  • Tax neutrality and Tax Exchange Agreements

 

The Valsen Advantage

  • End to end comprehensive service
  • Speedy and efficient service
  • Expert advice on structuring options
  • Dedicated ongoing compliance support
  • Extensive network pool of service providers