Against a backdrop of more US captive domiciles gaining prominence and maturing, companies may opt to keep their captives onshore. The Bermuda captive community will therefore need to focus on continuous improvement and take the necessary steps to retain existing captives and attract new captives that are fit for what Bermuda offers.
Bermuda’s insurers - and by extension captive insurers - have until July 1 to meet the government’s new economic substance requirements, although much of the industry is confident captives are in a good position to satisfy these requirements and that the impact of the legislation will be minor.
The Internal Revenue Service (IRS) had planned to use tape recordings of an undercover agent looking to form an 831(b) captive with Tribeca Strategic Advisors - now part of Artex Risk Solutions - in order to support its argument that a captive in a recent lawsuit lacked economic substance.
Labuan International Business and Financial Centre recorded growth of 11 percent in its captive insurance business in 2018, taking it to $400.5m in total assets, according to Farah Jaafar-Crossby, CEO of Labuan IBFC.
The number of captives managed by Marsh actively underwriting one or more insurance programmes that access the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA) increased 10 percent to 182 in 2018.
The Economic & Financial Affairs Council (ECOFIN) in Brussels has removed Bermuda, Barbados and Aruba from the list of non-cooperative tax jurisdictions, the so called EU 'blacklist'.
It is possible Bermuda will be removed from the European Union's list of non-cooperative jurisdictions in tax matters - also known as the blacklist - at a meeting of EU finance ministers (ECOFIN) on May 17.
North Carolina’s proposed legislation amendment that would temporarily exempt captive insurers redomesticating to the state from premium taxes - also known as the ‘premium tax holiday’ - has been delayed.
The Cayman Islands Monetary Authority (CIMA) has issued 13 new captive re/insurance licenses in the first quarter of 2019, and a further three to-date.
Vermont Governor Phil Scott has signed into law a bill to tidy up and modernise parts of its captive insurance law as it enters its 2019 legislative session.