Captives (as of 12/31/12) 741 256 856 116 160 588 Capitalisation ~ Class B(i) $100,000-General Capital - $125,000 minimum. $120,000 Class 1 Capital/Surplus: ~Pure Captive: $100,000 capital ~ Pure: $250,000 $200,000-Long-term $300,000- Capital may be provided by $250,000 - Class 2 ~Pure - $100,000 / $150,000 / $150,000 surplus ~ Association: $500,000 Irrevocable LOC $1,000,000 - Class 3,3A, 3B ~Association (Stock) - $200,000 / ~Industrial Insured: $200,000 ~ Industrial Insured: ~ Class B(ii) $150,000-General Class 2 and 3 minimum cash $300,000 capital / $300,000 stock / $500,000 $300,000-Long-term $450,000- $120,000 ~Assoc. (Mutual or Riciprocal) - $500,000 mutual in surplus ~ Sponsored: $500,000 Class 4 - $100,000,000 $200,000 / $500,000 ~Association: $400,000 capital / ~ RRG: $1,000,000 ~ Class B(iii) $200,000-General Long Term min capital - Agency, Rental or Sponsored - $350,000 stock / $750,000 Capital required to manage $400,000-Long-term $600,000- ~ Class C $500-General $500- $250,000 Cos. Min. capital - $370,000 $300,000 / $300,000 mutual in surplus ~Sponsored: $500,000 capital / $500,000 surplus difference between expected losses and the 90% confidence level. Surplus can Long-term $500- SPI - $1 Capital may be in the form of an be at discretion of ~ Class D $50M-General $50m- Long-term $50M- irrevocable LOC issued by a bank chartered by this State or a member bank of the Federal Reserve System. commissioner.
Solvency Provisions ~ Class B(i) $100,000-General $125,000 minimum net worth 20% on NWP for first $6M, Pure Captives $150,000; Agency, See "Capitalisation" See "Capitalisation" $200,000-Long-term $300,000- at end of year 1. Subsequent 10% thereafter (class 1 and class Association (Stock), Rental or requirements requirements years: Net premium written 2) 20% on NWP for first $6M, Sponsored Captives $300,000; ~ Class B(ii) General-10% of Minimum Net worth Less 15% thereafter (class 3,3A & Association Captives (Mutual or Net Earned Premium ("NEP") to than $750,000 3B) Risk Based Requirement Reciprocal) $500,000. Minimum first $5M, 5% of additional NEP $125,000 between $750k - (Class 4) Surplus must be in the form of up to $20M and 2.5% of $5 million 20% of NPW either cash or letter of credit. additional NEP in excess of to $1 million max. Greater Protected Cells the amount of $20M. Long-term-$300,000 than $5 million $1 capital and surplus to e determined -amount required to million plus 10% of NPW xs. by the Commissioner. support General plus Long-Term. of $5m. Solvency ~ Class B(iii) General-15% of NEP to first $5M, 7.5% of additional NEP up to $20M and II Is being adopted by Bermuda. Overall affect is unknown at this time. 5% of additional NEP in excess of $20M. Long-term-$400,000 -amount required to support General plus Long-Term. ~ Class C General-$500 Longterm-$500 -$500 ~ Class D See Regulation for details.
Registration and ~Class B(i)-$10,366 Fees: $10,000 annual licensing Fees: Application fee $300; annual ~Captives & RRGs: $200 Incorporation Expenses ~Class B(ii)-$11,585 ~Class B(iii)-$12,805 ~Class C-$6,098 ~Class D-$102,439 Application fee is licensing fee for the year of licensing, and if Licence obtained in Dec the fee is reduced to 1/12th. fee and $250 application fee license renewal fee $300. application fee, $300 license fee, $3,200 review fee ~SPFC: $12,000 Application fee; $200 processing fee; $300 license fee (Year 1), $500 per annum thereafter; $2,400 annual review fee (or actual cost if higher) Application Fees: $639 Registration Fees: Class 1 - $971 Class 2 - $2,200 Class 3 - $12,000 Class 3A - varies with premium $19,000 to $30,000 Class 3B & 4 - varies with premium $180,000 to $260,000 SPI - $6,000 Long Term - Class A&B - $10,500 Long Term - Class C to E - $20,000 to $60,000 ~ Application / license fee: $500 ~ Actuarial review $4,000 ~ renewal: $500 ~ Also legal, management fees etc Investment Restrictions None. See Cayman Islands Monetary Authority Statement of Guidance on Asset Management & Investment Strategy For Insurance Companies for general information. None, although an Investment Strategy forms part of the business plan. General business: 75% of general insurance liabilities must be in relevant assets None for long-term (life, disability) business Pure captives must file proposed investment with Commissioner. Association, Agency and Rental must comply with statutory requirements. Pure or Industrial Insured Captives are not subject to any restrictions on allowable investments; however, the director may prohibit or limit an investment that threatens the solvency or liquidity of the company. Association or Sponsored Captive Insurance Companies or Industrial Insured Groups shall comply with the investment requirements contained in Title 38 of SC Insurance Code. Varies by type; norestrictions for pure and industrial insured.
Director Minimum of two Directors - there Restrictions is no requirement for residency. At least one director will be a resident citizen of Barbados. and the captive appoints a registered agent within Barbados, uses a licensed manager, and maintains corporate, underwriting and financial records in Barbados. Registered office and a resident representative OR resident directors. No local director required. Captive must hold annual board of directors meeting in DC. You may file a waiver (not frequently granted) but a fine of up to $5,000 could be imposed if annual meeting is not held in DC. At lease 1 South Carolina resident director is required. Required to have at least one Directors' meeting each year in the state. One local Director required; minimum of 3 directors. One Directors' meeting in domicile annually. Asset Restrictions None. However see solvency calculation for Class D insurers pertaining to the various asset classes. No assets required to be held in domicile. Captive must comply with the minimum liquidity ratio for general business requirements which states that the value of relevant (liquid) assets of the insurer conducting general business may not be less than 75% of the amount of its relevant liabilities, unless the Minister of Finance consents to waive this requirement. Certain assets may be considered "nonrelevant" (usually non-liquid) and would not be considered in calculating the liquidity ratio. None Known None for pure captives. MinimumCould not locate information
Tax Treaties 30 signed - USA, Aruba, Argentina, Australia, Canada, China, Curacao, Czech Republic, Denmark, Faroes, Finland, France, Germany, Greenland, Guernsey, Iceland, India, Ireland, USA, UK, Canada, Austria, Malta, Netherlands, Norway, Sweden, Denmark, Switzerland, China, Cuba, Finland, Venezuela, China, Botswana, Mauritius and the Bermuda has over 25 tax information exchange agreements including one with the US. None Not applicable Not applicable Italy, Japan, Mexico, Netherlands, territories that comprise the New Zealand, Norway, Portugal, Qatar, Sint Maarten, South CARICOM Single market and Economy Africa, Sweden, UK. Reporting Requirements Annual Audited Financial Statements filed six (6) months after the close of the financial year along with: ~Class B(i)-Form6 ~Class B(ii)-Form7 ~Class B(iii)-Form8 ~Class C-Form10 ~Class D-Form11 Annual Audited Financial Annual Statutory Return filed Statements filed six (6) with BMA. Actuarial opinion months after the close of the not required for Class 1, financial year. Auditor required every 3 years for Class Certificate of Solvency. 2 and required every year for Actuarial certification of Class 3 & 4. reserves for long term business and where loss reserves exceed 200% of net worth. Annual Reports Before March 1st each year, all C Annual audited GAAP financial statement. Annual loss reserve certification by an approved individual. NAIC Statement for RRGs and association captives only. All information filed with authorities is confidential. Domicile URL http://cimoney.com.ky http://cayhttp://www.centralbank.org.bb / www.bermuda-insurance.org/ orwww.disb.dc.gov Captive Insurance Association - www.sccia.org Dept of Insurance - www.doi.sc.gov/captives http://www.dfr.vermont.gov/ captives/home