Captive Insurance Key Industry Issues in 2009 Babrow Building | The Valley | Anguilla | British West...

Captive Insurance

Key Industry Issues in 2009

Babrow Building | The Valley | Anguilla | British West Indies | AL-2640 | Telephone: (284) 494 4717 | Fax: (284) 494 8356

• Folio Insurance Management Limited is a licensed captive insurance manager, offering a range of services in relation to the formation and management of captive insurance vehicles

• Hyperion Risk Solutions Limited is a licensed insurance and reinsurance intermediary and international consultancy, specializing in the procurement of insurance solutions for a variance business needs.

Babrow Building | The Valley | Anguilla | British West Indies | AL-2640 | Telephone: (284) 494 4717 | Fax: (284) 494 8356

Folio & Hyperion – An Introduction

• Lack of available capacity in the commercial markets• Unreasonable terms and conditions being offered by the

commercial markets• Creation of cost benefit arising from internal risk

management controls• Access to reinsurance markets• Underwriting control and stability• Bottom-line protection against cyclical nature of

commercial insurance markets• Tax optimisation

Babrow Building | The Valley | Anguilla | British West Indies | AL-2640 | Telephone: (284) 494 4717 | Fax: (284) 494 8356

Why form a captive?

Types of captives

• Single parent captives• Group captives• Diversified captives• Agency captives• Association captives• Rent-a-captives • Segregated Portfolio Companies (SPCs)

Babrow Building | The Valley | Anguilla | British West Indies | AL-2640 | Telephone: (284) 494 4717 | Fax: (284) 494 8356

Typical Captive Clients

• S&P 500 Companies• Significant property owners (developers / hotel chains)• Government / Municipalities• Family business owners / Entrepreneurs• Medical Facilities / Nursing homes• Engineering / Mining• Associations (ICI Mutual, ALAS, OCIL)

Babrow Building | The Valley | Anguilla | British West Indies | AL-2640 | Telephone: (284) 494 4717 | Fax: (284) 494 8356

• Credit Enhancement• International Life Insurance• Conversion of banking products into

(re)insurance products (bonds, credit default swaps) – Insurance Special purpose vehicles (ISPV’s)

Babrow Building | The Valley | Anguilla | British West Indies | AL-2640 | Telephone: (284) 494 4717 | Fax: (284) 494 8356

Captives – Additional Uses

• In excess of 6,000 captive (re)insurance vehicles worldwide

• Writing more than US$30 billion in premiums• 50+ active domiciles (compared to around

25 in 2003)• Capital and surplus estimated at over US$75

billion

Babrow Building | The Valley | Anguilla | British West Indies | AL-2640 | Telephone: (284) 494 4717 | Fax: (284) 494 8356

Captive Statistics

• Around 200 captive (re)insurance vehicles• Generally small to medium sized• Continued year on year growth

Babrow Building | The Valley | Anguilla | British West Indies | AL-2640 | Telephone: (284) 494 4717 | Fax: (284) 494 8356

Anguilla Captive Statistics

Key Issues:

• Organization• Private sector investment• Taxation /AML compliance• Highlight niche markets• Treaties• Direct and indirect marketing

Babrow Building | The Valley | Anguilla | British West Indies | AL-2640 | Telephone: (284) 494 4717 | Fax: (284) 494 8356

How can Anguilla sustain its recent momentum?

Questions

Babrow Building | The Valley | Anguilla | British West Indies | AL-2640 | Telephone: (284) 494 4717 | Fax: (284) 494 8356