Gibraltar

[Last updated: 02/02/23]
 
Regulatory contact: Joe Perdoni ( jperdoni@fsc.gi)
Gibraltar Financial Services Commission
PO Box 940, Suite 3, Ground Floor Atlantic Suites, Gibraltar, GX11 1AA
Telephone Number +350 200 40283
Email Address:  info@fsc.gi
Website:  www.fsc.gi

Name of Captive Legislation
Financial Services (Insurance Companies) Regulations 2020 (Insurance Companies Regulations)
Additional relevant legislation relating to Protected Cell Companies: Protected Cell Companies Act 2001

Year Legislation Passed
2020

Recent Amendments
24 November 2022

Do you allow Cell Captives?
Yes.

Total Number of Permissioned Captives:

Number of Risk Retention Groups or Group Captives          
3 Protected Cell Companies

Number of Single Parent Captives
37 (Including Cells)

Number of Cell Captives                       
30 

Number of licences granted in the past year (2015 calendar year)         
2 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 12.5% and only applies to taxable profits on activities accruing in or derived from Gibraltar.

Minimum capitalisation rate 
Standalone captives: Minimum requirements in accordance with the Insurance Companies Regulations, whereby a captive must hold capital to cover both its Solvency Capital Requirement and Minimum Capital Requirement. 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 the Insurance Companies Regulations. 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.

Fees

Application Fees
New standalone/PCC insurance company application: £60,000
Approval of additional classes of business for a PCC or standalone captive: £15,000
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 £8,499.

Cell Fee
An additional fee, charged at a rate of £2,428 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 £183 per £1,000,000 or part thereof of GPI
£10,000,001 GPI ≤ £25,000,000 – additional charge at a rate of £152 per £1,000,000 or part thereof of GPI
£25,000,001 ≤ GPI ≤ £100,000,000 – additional charge at a rate of £123 per £1,000,000 or part thereof of GPI
£100,000,001 ≤ GPI ≤ £250,000,000 – additional charge at a rate of £92 per £1,000,000 or part thereof of GPI
GPI ≥ £250,000,001 – additional charge at a rate of £60 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 £254 per £1,000,000 or part thereof of GPI
£10,000,001 ≤ GPI ≤ £25,000,000 – additional charge at a rate of £234 per £1,000,000 or part thereof of GPI
£25,000,001 ≤ GPI ≤ £100,000,000 – additional charge at a rate of £213 per £1,000,000 or part thereof of GPI
£100,000,001 ≤ GPI ≤ £250,000,000 – additional charge at a rate of £190 per £1,000,000 or part thereof of GPI
GPI ≥ £250,000,001 – additional charge at a rate of £171 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 £37 per £1,000,000 or part thereof of GTL
£10,000,001 ≤ GTL ≤ £25,000,000 – additional charge at a rate of £31 per £1,000,000 or part thereof of GTL
£25,000,001 ≤ GTL≤ £100,000,000 – additional charge at a rate of £25 per £1,000,000 or part thereof of GTL
£100,00,001 ≤ GTL ≤ £250,000,000 –additional charge at a rate of £18 per £1,000,000 or part thereof of GTL
GTL ≥ £250,000,001 – additional charge at a rate of £11 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 the United Kingdom.

Total premiums received by the Captives             
£112.7m

Total value of assets under management             
N/A

Captive Insurance Managers registered to conduct business in the domicile
All permissioned Insurance Managers in Gibraltar are permitted to provide insurance management services to Captives. A current list of permissioned Insurance Managers is as follows:

Please note a list of these is available on the GFSC website: https://www.fsc.gi/regulated-entities/insurance-managers-10