The insurance industry in Malaysia’s offshore financial centre, Labuan, has achieved growth for the sixth consecutive year, according to the Labuan Financial Services Authority (LFSA) annual report for 2013.
Labuan’s captive insurance business recorded a 33.8 percent increase in total gross premiums amounting to $437.5 million, compared to $327.1 million in 2012.
Overall, the Labuan insurance sector has maintained a strong margin of solvency of 5.2 times above the minimum regulatory requirement. The Labuan International Business and Financial Centre posted an improved industry profit before tax of $263.3 million in 2013 compared to $121.5 million in 2012.
The Labuan insurance sector continued to attract new international institutions to establish operations in the LIBFC.
During the year, 19 new licences were granted, comprising four reinsurers, three retakaful operators, three insurers, four captives and five brokers—bringing the total number of Labuan insurance and insurance-related companies to 213.
The year also witnessed the entrance of a renowned Middle Eastern reinsurance company to establish its first overseas branch in Labuan to tap the regional business.
Labuan, alongside Singapore and Hong Kong, is viewed as offering the best opportunity for captive growth in the Far East.
The total gross written premiums for Labuan’s general insurers and reinsurers have continued to surpass the $1 billion mark for the past six years.
Labuan, Malaysia, captive insurance, LFSA, LIBFC