Offshore Insurance

Offshore jurisdictions all have competitive legislation for the formation and registration of offshore insurance companies. Though the requirements for setting up offshore insurance companies are more or less the same, these requirements may differ, especially in terms of capitalisation and the amount of paid-up share capital offshore insurance companies are required to have in order to be registered in the jurisdiction. Offshore insurance companies are tax exempt entities and to carry on certain types of insurance, say, life, long-term, mutual, assurance or reinsurance services, must meet certain prerequisites.

In addition to offshore insurance services, registered service providers in leading offshore havens facilitate applications for citizenship by investment programs. These agents are government approved and are regulated thoroughly. A second passport helps give easier entry to many countries and consequently better education, health care, jobs and business opportunities. For details on how to apply and other methods of asset protection please contact our professional team. With this and our offshore solutions, you are on the right path to preserving wealth.

Belize Offshore Insurance

Belize Offshore Insurance Applicants for offshore insurance in Belize must be a mutual society, syndicate or a company, and have a paid-up share capital of at least USD 10,000 if intending to conduct long-term offshore insurance business; at least USD 100,000 if intending to conduct general offshore insurance; and at least USD 50,000 if intending to conduct solely offshore reinsurance business. Potential offshore captive insurers must have a paid-up share capital of at least USD 25,000. Any amount deposited in a Belize offshore bank or authorized financial institution cannot be withdrawn without the Supervisor’s approval.

Offshore insurance business must only be conducted by persons with adequate knowledge and training in the field. A registered offshore insurance manager must be appointed, controlled by at least one director, who may be resident in Belize. Belize offshore companies to appoint at least one lawyer who resides in Belize for undertaking any legal proceedings that the offshore insurance company may have.

All Belize offshore insurance companies must have a registered office in Belize, and are required to maintain the relevant records and accounts reflecting the company’s transactions and financial standing. Records and accounts must be kept in accordance with approved standards and can only be held outside Belize if allowed by the Supervisor if a written request is submitted to the Supervisor and approved.

Bermuda Offshore Insurance

Offshore insurance in Bermuda consists of Class 1, Class 2, Class 3, Class 3A, Class 3B and Class 4, long-term insurers and special purpose insurers.

Class 1 offshore insurance companies are offshore companies that are fully owned by a single individual or a group and cover the risks of only that individual or group.

Class 2 offshore insurance companies are bodies corporate that are fully owned by two or more persons that are not associated with each other. The offshore insurance conducted by the two is not lower than 80% of the net premiums written to cover risks originating from the business activities of the two persons or their affiliates, or to cover the personal risks of those persons or their affiliates. In the absence of the 80% net premium provision, a Class 2 Bermuda offshore company could be registered as a Class 1 offshore company.

Class 3 offshore insurance companies refer to companies that provide offshore insurance services where 50% or more of the company’s net premiums or loss and loss expense provisions are associated with unrelated business. An offshore insurance company that operates under these conditions can be registered as a Class 3A offshore insurance company if its total net premiums are below USD 50 million. The provisions for Class 3B offshore insurance companies are the same as those for offshore Class 3A offshore insurance companies, with the exception that the total net premiums originating from unrelated business is USD 50 million and over.

Class 4 offshore insurance companies are insurance companies which upon registration own a total statutory capital and surplus of USD100 million and above, and in addition to regular insurance business wishes to provide excess liability, or reinsurance for property catastrophe services. Bermuda offshore insurance companies that have been classified as Class 1 and Class 2 companies cannot be registered as Class 4 offshore insurance companies at the same time.

Upon registration, Class 1, 2 , 3, 3A and 3B offshore insurance companies are required to have a paid up share capital of USD 120,000, or USD 250,000 if also providing long-term insurance, while a Class 4 offshore insurance must have a paid up share capital of USD 1 million, or USD 1,250,000 if also providing long-term insurance.

Bahamas Offshore Insurance

With the exception of life assurance business, all offshore insurance companies that are registered in The Bahamas (on and from the date of enactment of the Insurance Act) are required to ensure that their assets are more than their liabilities by at least USD 140,000, while all other offshore insurance companies are to meet satisfy capitalisation requirements. Accordingly, an offshore insurance company is expected to have its assets exceed all liabilities by USD 140,000 if the non-life insurance in the previous accounting period was not over USD 700,00, and 1/5 of the stated amount if income generated for a financial year was more than USD 700,000 but not over USD 7 million. Offshore insurance companies with incomes of more than USD 7 million for any given financial year are expected to have its assets exceed it liabilities by the aggregate of USD 1,400, 000 and 1/10 of the amount by which the income stated for that year was over USD 7 million.

Barbados Offshore Insurance

All Barbados offshore insurance companies and offshore mutual insurance companies are required to have a paid-up capital and contributed reserves (respectively) of no less that USD 250,000, At least one director of a Barbados offshore insurance company must be a resident citizen of Barbados, but is unable to subscribe for or acquire any shares.

Dominica Offshore Insurance

All offshore insurance companies registered in Dominica are required to meet the stipulated capitalisation standards and to appoint a local registered agent. Dominica offshore insurance companies may not conduct insurance business in Dominica and must only conduct the insurance business for which a license was granted.

Nevis Offshore Insurance

Any applicant for offshore insurance in Nevis must be a company that has been registered under and governed by the Business Corporation Ordinance 1984. All offshore insurance applicants intending to conduct long-term insurance business must have a paid-up share capital of at least USD 500,000. Offshore insurance company intending to conduct solely general offshore insurance must have a paid-up share capital of no less than USD 500, 000; offshore reinsurance companies must have USD 200,000 paid-up share capital; and offshore captive insurance companies with a single owner must have USD27, 000, while an offshore captive with 5 owners must pay up USD 54,000 and with five owners or over – USD 135,000. Nevis offshore insurance companies are governed by the Nevis International Insurance Ordinance 2004.

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