Bermuda Captive Conference to highlight industry stability

The strong pace of captive formations will be a key focus of the 2023 Bermuda Captive Conference, according to PwC Bermuda.

This year’s theme is ‘Adaptability’, highlighting the strength and stability of the Bermuda industry, now home to over 700 captive insurance companies.

“Not only are we seeing significantly more captive formations - but also the time from interest to inception is far faster than in previous years,” said David Gibbons, Captive Insurance Leader, PwC Bermuda. “Due to increasing premiums in the insurance and reinsurance markets, existing captives are also re-examining the business they write and assessing the risk versus benefit of increasing the captive’s retention.”

Another big topic at this year’s conference will inevitably be the global minimum tax rate of 15% on multinationals.

Scott Slater, Tax Services leader, PwC Bermuda, is speaking in the 12 September session, Global Minimum Tax – An Easy Fix? During the session, Slater and other panellists will weigh in on where we are now and what captive owners and service providers alike need to be aware of.

The Bermuda Government has issued a public consultation document as part of its considerations on introducing a corporate income tax to apply to Bermuda businesses that are part of Multinational Enterprise Groups (MNEs) with annual revenue of €750m or more.

Scott Slater, Tax services leader, PwC Bermuda, said: “It is proposed for the tax to apply from 1 January 2025 or after, and to closely follow the OECD model rules. Along with discussing the high-level features of the income tax regime, including a proposed rate of 9-15%, which the Government is currently considering, the consultation includes a series of specific questions that the Government is interested in receiving public comments, and is expected to be the first in a series of public consultations in relation to this subject.”