Isle of Man closes 2014 with 5% captive growth
The Isle of Man has posted 5 percent growth in the number of captive formations in 2014. During this period, seven captives were dissolved.
Gaynor Brough, chairman of the Isle of Man Captive Association, explained that invariably there will always be a number of captives in mature domiciles which do come to the end of their useful lifecycle and the M&A activity is a contributing factor.
"However, we are delighted with the new captive growth during the period which reflects our performance in 2014. New captive formations produce an increase in GPW/NPW, increased fees and create the requirements for additional headcount. 2015 has started in the same vein with a healthy pipeline including a number of advanced re-domiciliation opportunities.
She added that the introduction of Insurance Special Purpose Vehicle legislation is set to benefit the island. The new licensing process will use a five day guaranteed turnaround receipt of applications.
Brough expects particular interest in the use of insurance structures by companies seeking access to the wholesale market to hedge their defined liability pension funds, given the Isle of Man’s expertise in pensions business.