Bermuda is a group of islands in the western Atlantic about 600 miles east of South Carolina and approximately 750 miles southeast of New York City. The main islands, connected with bridges or causeways, are about 22 miles long with an average width of between one half and one mile. The population of Bermuda is approximately 60,000.
Bermuda is the oldest and largest British Dependent Territory with effective self-government. The two industries that support the island's economy are tourism and international business, the latter dominated by the insurance sector.
The Bermuda Government has historically been very supportive of the island's insurance industry. It is a true partnership that has proved highly successful over the years.
Interested in Setting Up a Captive in Bermuda?
- Call Robert Eastham +1 441 299 6811
- E-mail Robert Eastham
More Information
General Information
Government
British Crown Colony with effective self-government.
Legal
Common law based closely on the English legal system.
Taxation
For foreign owned, exempt companies in Bermuda, there is no taxation on profits, dividends or income nor is there any capital gains tax or gift tax.
Currency Control
Companies incorporated in Bermuda are not subject to any form of currency or monetary control. They may trade and maintain bank accounts in any currency or country and are completely free to remit, repatriate or otherwise transfer funds.
Stamp Duty
In February 1990, stamp duties payable by insurers and other exempted companies were abolished.
Regulatory Environment
All insurance companies in Bermuda are regulated under the Insurance Act 1978 and the Bermuda Government's policy states that the insurance industry should be largely self regulated within the framework of the Act.
Multi Licence System
Ranging from single parent captive writing own risk only to excess liability and property catastrophe reinsurers.
Principal Representative
Every insurer is required to maintain a principal office in Bermuda and also appoint a resident "Principal Representative", a position normally filled by the captive manager.
Auditors
Every insurer is required to appoint an independent, approved firm of auditors to report on Statutory Financial Statements and returns.
Costs of Setting Up Captives
Minimum Paid Up Capital
Property and casualty insurers: USD120,000 to USD1,000,000
Life only insurers: USD250,000
Property, casualty and life insurers: USD370,000 except Class 4 insurers USD1,250,000
Minimum Capital and Surplus
A Bermuda Insurer is required to maintain minimum capital and surplus representing the minimum solvency margin benchmarks. The minimum solvency margin requirements represent the greater of the minimum capital and surplus, the premium test, and the loss test noted in the table below
