Captive news

Hong Kong bill to halve captive profit tax Hong Kong has announced a bill which will halve the tax on the profits of captive insurers' offshore risk insurance business. Secretary for Financial Services & the Treasury Prof KC Chan said that the Inland Revenue (Amendment) (No.3) Bill would help the development of other related businesses, including reinsurance, legal and actuarial services of a cluster of captive insurers in Hong Kong. He added that it would reinforce Hong Kong's status as a regional insurance hub, while making Hong Kong's risk-management services more diversified. The tax concession will take effect from the 2013-14 year of assessment if the Legislative Council passes the bill.hideWillis appoints leader of Willis Global Captive Management Willis Group has appointed Paul Owens as CEO of the newly formed Willis Global Captive Management business. In his new role, he will lead the formation of Willis Global Captive Management, bringing together the captive operations of North America, Europe and International into a single cohesive business. He was most recently chief operating officer of Willis Limited and Global Businesses and has had a long association with the Group's captive operations. Cayman recognised by Financial Stability Board The Financial Stability Board (FSB) has confirmed its designation of the Cayman Islands as a jurisdiction "which demonstrates sufficiently strong adherence to international standards on cooperation and information exchange." The FSB again listed the Cayman Islands among those countries which meet the standards in the areas of banking supervision, insurance supervision and securities regulation. The Cayman Islands first gained this recognition in 2012. The FSB began the initiative in 2010, in response to a call by the G20 leaders to develop a toolbox of measures to promote adherence to prudential standards and cooperation with jurisdictions. "Cooperation and information exchange amongst financial supervisors and regulators are essential for effective oversight in an integrated financial system", said the FSB. Montana reports 36 new captives in 2013 The US state of Montana has seen a net gain of 36 new captive insurance companies and risk retention groups in 2013. The Office of the Montana Insurance Commissioner reported that the domicile had a total of 150 captive licences at December 31, 2013, compared to 114 in the previous year. Montana saw the formation of two new series limited liability companies licensed as captive insurers, the first in Montana being organised by Aceterrus Insurance Resources. The two series limited liability companies had a combined count of 10 series at 2013 year end, the latter also licensed as captive insurers. The Montana Captive Insurance Association drafted series limited liability company legislation in 2013, which became effective on October 1, 2013. Series limited liability companies are US vehicles based on protected cell company or segregated portfolio company structures, with a capitalised core and a number of 'series' or special business units. Tennessee reports 23 new captives in 2013 Tennessee licensed 23 new captives during 2013. The Tennessee Department of Commerce and Insurance's Captive Insurance Section reported that the domicile ended 2013 with 32 licensed captives. Of those 32 companies, three have 10 cell companies within the captive. Tennessee passed new captive insurance legislation in 2013. The state had originally enacted captive legislation in 1978. Four captives for North Carolina in its first year The North Carolina Department of Insurance has issued four captive insurance company licences since the state's Captive Insurance Act went into effect in late October 2013. One of the companies is a protected cell insurance company. The companies that were licensed were from both within and without North Carolina. Thomas L. Adams, president and CEO of the NC Captive Insurance Association (NCCIA) Said, "We are pleased that the North Carolina Department of Insurance has licensed North Carolina's first companies and did so before the close of 2013, making good the promise to move swiftly on licence applications in the state. The speed of the Department staff in reviewing and approving this first batch of applications in about a month is a testament to the state's desire to be a business friendly place to domicile captives." Note: North Carolina Insurance Commissioner Wayne Goodwin has announced that Debbie Walker has been named the Director of Captive Insurance for the North Carolina Department of Insurance. As head of the department's Captive Insurance Section, Ms Walker will be responsible for analysing captive insurance licence applications and overseeing the regulation of licensed captive insurers in North Carolina. Bermuda appoints director of insurance supervision The Bermuda Monetary Authority has appointed Andrew Gibbs to the position of director, Supervision (Insurance). He will report to Craig Swan, managing director, Supervision. Mr Gibbs is a chartered accountant and chartered insurer with 27 years of experience in the Bermuda market. For the past five years he has held positions at Validus Holdings Ltd as executive vice president, head of Internal Audit, following a period as the company's group controller. Prior to that, he spent 12 years with the ACE Group of Companies as chief financial officer of ACE Global Re as well as chief financial & operating officer of ACE Bermuda. Guernsey reports captive growth Guernsey saw the number of captives grow to 318 at the end of 2013, comprising 242 captives, 69 protected cell companies (PCCs), and seven incorporated cell companies (ICCs). The PCCs had a total of 414 cells, and the ICCs had 26 cells. This compares with 242 captives, 68 PCCs, and five ICCs, with 404 cells and 18 cells respectively. The Guernsey Financial Services Commission's insurance statistics as at December 31 2013 showed that there were 10 new captives formed during 2013, with 10 licences surrendered. Six new PCCs were formed with five PCCs licences surrendered. There were 63 PCC cells formed and 53 surrendered in 2013. Two new ICCs were formed, with eight new cells. The Commission said that in December 2013, 32 PCC cells were surrendered primarily due to them having been dormant for some time and not writing any new insurance business. International insurers reported gross assets of £22.90bn for 2012 (2011:£22.41bn), net worth of £9.34bn (2011:£9.24bn) and premiums written of £4.63bn (2011: £4.75bn). Two new authorised insurance managers were licensed in 2013 and one surrendered its licence, to leave 20 authorised managers at the end of 2013.

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