BERMUDA vs Guernsey. Reinsurance and jurisdiction choice INSURANCE INVESTMENT FUNDS TRUST & COMPANY PENSIONS INVESTMENT MANAGEMENT BANKING

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Dominick Booker
6 years ago
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1 vs Guernsey Reinsurance and jurisdiction choice INSURANCE INVESTMENT FUNDS TRUST & COMPANY PENSIONS INVESTMENT MANAGEMENT BANKING

2 Bermuda vs guernsey Bermuda vs guernsey 53 sq km Hurricanes GMT -4h 70,537 (2016) English British overseas territory English common law 2 Bermuda vs Guernsey 62 sq km GMT +0h 62,821 (2016) English Crown dependency English common law Stable government Stable government Political parties No political parties

3 economy, public finances, finance industry and risk tier ECOnomY Finance industry Currency Gross Domestic Product (GDP) GDP per capita Bermudian Dollar = USD1 $5.2 billion (2013) $85,700 (2013) Guernsey Pound = GBP1 $3.5 billion (2014) $52,300 (2014) Employment Licensed insurers 3,900 people employed in international business activity including insurance (2015) 1,217 (2014) 6,828 people employed in finance including 753 employed in insurance (2016) 835 (2016) Labour force 33,490 (2014) 30,851 (2016) Licensed banks 4 (Q2 2017) 25 (Q2 2017) Unemployment rate 7% (2015) 1.2% (2017) Investment funds 489 (2015) 807 (Q1 2017) Licensed trust companies 28 (Q2 2017) 150 (Q2 2017) public finances Stock Exchange Bermuda Stock Exchange (BSX) The International Stock Exchange (TISE) Public debt $2.2 billion 43% of GDP 330 million Country risk tier Deficit Credit rating Latest $275 million 5-year mean - $254m A+ (Standard & Poor s) A2 Stable (Moody s) Latest 24 million 5-year mean - 21m AA- (Standard & Poor s) Country Risk Tier CTR-2 with moderate economic risk, low financial system risk, and very low political risk A.M. Best CTR-1 with very low economic, political and financial system risk A.M. Best weareguernsey.com 3

insurance industry and taxation L EGA L insurance industry REGULATOR + TAX REGIME taxation Licenced insurers 1,217 (2014) 835 (2016) Employment 3,900 people employed in international business

4 insurance industry and taxation L EGA L insurance industry REGULATOR + TAX REGIME taxation Licenced insurers 1,217 (2014) 835 (2016) Employment 3,900 people employed in international business activity including insurance (2015) 6,828 people employed in finance including 753 employed in insurance (2016) Corporation tax ; 7% rate of corporate services tax applies to income derived from corporate service business 0% standard rate of corporation tax; 10% rate of corporate tax applies to income derived from domestic insurance business Income tax 20% on income after personal allowances (subject to caps) Payroll tax Payable by both employer and employee: employer portion at marginal rates up to 10.25%; employee portion at marginal rates up to 8.75% Sales tax 5% GST due to be implemented from April 2018 Customs duties Duty imposed on most imported goods at 25% rate Meets international standards? OECD whitelist OECD whitelist Lawyers include: Accountants include: Proximity to insurance markets New York London, Munich and Zurich Proximity to investment markets New York London 4 Bermuda vs Guernsey

5 regulation, legislation and solvency regulation legislation Regulator Appropriate regulation Meets international standards? Bermuda Monetary Authority Compliant or largely compliant in 19/49 FATF standards Guernsey Financial Services Commission Compliant or largely compliant in 48/49 FATF standards Law Insurance law Modern and appropriate Common Law Insurance Act 1978 and secondary legislation made under powers created therein Common Law Insurance Business (Bailiwick of Guernsey) Law, 2002 and in regulation and rules made under powers created therein Company law Companies Act 1981 Companies (Guernsey) Law, 2008 Modern and appropriate Solvency solvency Commercial (re) insurers solvency requirements equivalent to those under Solvency II. Both commercial and captive insurers solvency requirements based on proportional IAIS-based regulation. Guernsey is not seeking Solvency II equivalence. Time of incorporation Cell companies Incorporation of an Exempt Company in 2-3 weeks for $ Bermuda introduces Segregated Accounts Companies (similar to the Guernsey PCC) Standard incorporation of a limited company within 24 hours for Guernsey pioneers the Protected Cell Company (PCC) 2005 The Incorporated Cell Company (ICC) is introduced weareguernsey.com 5

LINKS Flights Ferries Telecommunications links Data Protection Direct flights to United States (US),

adequate protection by the European Union (EU).

Regulation Direct flights to the UK Daily to UK and France Satellite plus cable links to the UK and

6 LINKS Flights Ferries Telecommunications links Data Protection Direct flights to United States (US), Canada and the United Kingdom (UK) Satellite plus cable link to US Not recognised as providing adequate protection by the European Union (EU). Personal Information Protection Bill 2016 to ensure adequacy under EU General Data Protection Regulation Direct flights to the UK Daily to UK and France Satellite plus cable links to the UK and France Recognised as providing adequate protection by the EU. New primary legislation to ensure adequacy under EU General Data Protection Regulation 6 Bermuda vs Guernsey

7 relocation Immigration and residency All persons other than Bermudians, persons married to Bermudians or persons holding a Permanent Residents Certificate must have a valid work permit or permission to legally remain in Bermuda Work permits for non-bermudians available through Bermuda Immigration and Protection Act, 1956 No citizenship or residency by investment British citizens, EEA national, Swiss nationals and those with a Right of Abode in the UK are able to reside in Guernsey without a need for permits Work permits for other nationals available through the Immigration (Bailiwick of Guernsey) Rules, 2008 Investor and Entrepreneur Visa schemes also available for HNWIs and entrepreneurs Property Market Employing staff Schooling Healthcare Community Restricted number of properties available for purchase by non-bermudians Licence required for any non-bermudian to buy property in Bermuda and a licence fee of 12.5% of value of property payable International business is largest employer and thus large pool of skilled local individuals Non-Bermudians can only be employed if employer can demonstrate that no Bermudian, spouse of a Bermudian or Permanent Residency Certificate holder was suitably qualified or available to be hired A large range of primary education and middle schools Two high schools and six private schools Access to higher education in USA and UK No publicly funded healthcare system Large expat community Wide range of properties available for immediate purchase on the Open Market without requiring residency qualifications Local Market properties available to qualifying persons under Population Management (Guernsey) Law, 2016 Finance industry is largest employer and thus large pool of skilled local individuals For relocating staff the Population Management (Guernsey) Law operates a points based system and applications process for employers A large range of primary education schools Three high schools, one Grammar School and Sixth Form College and three independent schools achieving high GSCE and A-Level results Access to higher education in UK Public/private healthcare system with some charges paid by end user and other funded by the Guernsey government Large expat community weareguernsey.com 7

8 weareguernsey.com +44(0) Guernsey Finance, PO Box 655, St Peter Port, Guernsey, GY1 3PN

longevity risk transfer

longevity risk transfer Peace of mind for scheme sponsors, trustees and members INSURANCE INVESTMENT FUNDS TRUST & COMPANY PENSIONS INVESTMENT MANAGEMENT BANKING What is longevity risk? The length of time