Labuan reports healthy growth for captives in 2019

Labuan has 219 insurance entities in operation, including 52 captives and 64 re/insurers, having authorised five new captives in 2019, according to Labuan Business and Financial Centre’s (Labuan IBFC) 2019 market report.

Insurance generated premiums of $1.5 billion in 2019, of which 30 percent was generated by captives. Labuan captives increased premiums by 14.2 percent in the year to $457.5 million, with 64.5 percent of the total premiums originating from international markets, and 58 percent coming from Asia and the Pacific region.

Premium growth was mainly driven by general liability, which accounted for 32.5 percent, or $148.6 million, and engineering, which accounted for 27 percent of premiums, or $124.2 million.

Labuan IBFC believes there is plenty more growth to come from the captive industry in Asia. It noted that 40 percent of Fortune 500 companies are headquartered in Asia, but only 6 percent of those companies have captive structures.

It believes it is well positioned to lead that growth, offering Islamic solutions via takaful captives and a range of other captive structures at various price points to suit different risk appetites.