Gibraltar

Gibraltar

Gibraltar has access to the single European market. Insurers benefit from a competitive tax regime, an accessible, approachable and pragmatic regulator enabling the swift and efficient transaction of the industry’s business. Gibraltar has leading captive legislation and was the first EU territory to adopt PCC legislation.

[Last updated: 27/07/16] 
Regulatory contact:
Gibraltar Financial Services Commission
PO Box 940, Suite 3, Ground Floor Atlantic Suites, Gibraltar, GX11 1AA
Telephone Number +350 200 40283 
Email Address information@fsc.gi
Website www.fsc.gi



Name of Captive Legislation              
Financial Services (Insurance Companies) Act
 
Year Legislation Passed                       
1987
 
Recent Amendments                            
1 January 2016
 
Do you allow Cell Captives?               
Yes. The Protected Cell Companies Act legislation was passed in 2001
 
Total Number of Licenced Captives 
 


Type of Captive

Number of Licenced Captives

Standalone Captives

8

Cells

35

Totals

43


 
Number of Risk Retention Groups or Group Captives        
3 Protected Cell Companies
 
Number of Single Parent Captives  
43 (Including cells)
 
Number of Cell Captives                     
35
 
Number of licences granted in the past year (2015 calendar year)         
5 Cells
 
 
Approximate (or Average) length of time to process a new captive
Service Level Standard: 6 months. Average 2-3 months
 
 
Captive tax rates 
No specific tax rates for captives. Normal taxation rules apply.
Corporation tax rate is 10% and only applies to taxable profits on activities accruing in or derived from Gibraltar.
 
Minimum capitalisation rate 
Standalone captives: Minimum requirements in accordance with Solvency II, whereby captive must hold capital to cover both its Solvency Capital Requirement and Minimum Capital Requirement under the Solvency II Directive - Directive 2009/138/EC of the European Parliament and of the Council. Absolute Minimum Capital Requirement is €2.5 million or €3.7 million for general business (depending on the classes of business authorised); or €3.7 million for long term business.
 
Captive cells: Each cell is required to meet its notional Solvency Capital Requirement and Minimum Capital Requirement under Solvency II. There is no Absolute Minimum Capital Requirement for a cell. The overall Protected Cell Company (PCC) must hold capital to cover its Solvency Capital Requirement and Minimum Capital Requirement. As a minimum, the PCC must hold capital to cover the Absolute Minimum Capital Requirement of either €2.5 million or €3.7 million for general business (depending on the classes of business authorised); or €3.7 million for long term business.
 
 
Licencing fees
Application Fees
New standalone/PCC insurance company application: £10,000
Licence extension for additional classes of business for a PCC or standalone captive: £5,000
New PCC captive cell: £2,500
 
 
Annual Fees
Base Fee + Cell Fee + (GPI Fee + GTL Fee + Passporting Fee) + Internal Capital Model Fee
(Note GPI = Gross Premium Income and GTL = Gross Technical Liabilities)
 
Base Fee
A flat fee of £7,000.
 
Cell Fee
An additional fee, charged at a rate of £2,000 per Cell.
 
GPI Fee (non-life captive insurers)
An additional fee based on GPI—
£0 ≤ GPI ≤ £10,000,000 – additional charge at a rate of £150 per £1,000,000 or part thereof of GPI
£10,000,001 GPI ≤ £25,000,000 – additional charge at a rate of £125 per £1,000,000 or part thereof of GPI
£25,000,001 ≤ GPI ≤ £100,000,000 – additional charge at a rate of £100 per £1,000,000 or part thereof of GPI
£100,000,001 ≤ GPI ≤ £250,000,000 – additional charge at a rate of £75 per £1,000,000 or part thereof of GPI
GPI ≥ £250,000,001 – additional charge at a rate of £50 per £1,000,000 or part thereof of GPI.
 
GPI Fee (life captive insurers)
An additional fee based on GPI— £0 ≤ GPI ≤ £10,000,000 – additional charge at a rate of £210 per £1,000,000 or part thereof of GPI
£10,000,001 ≤ GPI ≤ £25,000,000 – additional charge at a rate of £192 per £1,000,000 or part thereof of GPI
£25,000,001 ≤ GPI ≤ £100,000,000 – additional charge at a rate of £175 per £1,000,000 or part thereof of GPI
£100,000,001 ≤ GPI ≤ £250,000,000 – additional charge at a rate of £157 per £1,000,000 or part thereof of GPI
GPI ≥ £250,000,001 – additional charge at a rate of £140 per £1,000,000 or part thereof of GPI.
 
GTL Fee
An additional fee based on the GTL— £0 ≤ GTL ≤ £10,000,000 – additional charge at a rate of £30 per £1,000,000 or part thereof of GTL
£10,000,001 ≤ GTL ≤ £25,000,000 – additional charge at a rate of £25 per £1,000,000 or part thereof of GTL
£25,000,001 ≤ GTL≤ £100,000,000 – additional charge at a rate of £20 per £1,000,000 or part thereof of GTL
£100,00,001 ≤ GTL ≤ £250,000,000 –additional charge at a rate of £15 per £1,000,000 or part thereof of GTL
GTL ≥ £250,000,001 – additional charge at a rate of £10 per £1,000,000 or part thereof of GTL.
 
 
Industry sectors best represented in the domicile 
Gibraltar's economy is dominated by four main sectors: financial services, online gambling, shipping, and tourism, which includes retail sales to visitors.
 
Top uses for Captives in the domicile
Main captive uses are for covering Property, Third Party Liability and Miscellaneous Financial Loss, global risks, with an emphasis on European Union territories and in particular the United Kingdom.
 
Total premiums received by the Captives             
£284.2m
 
Total value of assets under management             
£1,718.5m
 
Captive Insurance Managers registered to conduct business in the domicile
All licenced Insurance Managers in Gibraltar are permitted to provide insurance management services to Captives. A current list of licenced Insurance Managers is as follows:

  • Aon Insurance Managers (Gibraltar) Limited
  • Artex Risk Solutions (Gibraltar) Limited
  • Horseshoe Management (Gibraltar) Limited
  • Quest Insurance Management (Gibraltar) Limited
  • R&Q Insurance Management (Gibraltar) Limited
  • Robus Risk Services (Gibraltar) Limited
  • STM Fidecs Insurance Management Limited
  • Willis Management (Gibraltar) Limited

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