The Bermuda Monetary Authority (BMA) issued licenses to 10 captive insurers in 2024, further solidifying Bermuda’s position as a leading domicile for these structures.
Between January and October, the BMA approved five Class 1 captives, two Class 2, one Class 3, and two Class A captives, according to its latest licensing data.
In total, 53 insurance entities received approval during this period, including 10 intermediaries. A 2023 Best’s Market Segment Report ranked Bermuda as the second-largest domicile, with 10.6% of captives, following Vermont’s 16.1%.
The approved Class 1 captives are Revias Insurance, Intimorato Insurance, Red Eagle Insurance, Mulligan Insurance, and QFI Risk Solutions (SAC) Class 2 captives include I-RE Insurance and Periculum Reinsurance Corporation International. The sole Class 3 captive is Edgware Re, while Class A approvals include Arrowhead Insurance and Suffolk Insurance.
Earlier in 2024, Lloyd’s announced a memorandum of understanding with the BMA to share international insurance expertise.
The collaboration focuses on regulatory developments, Lloyd’s Lab programs, and educational initiatives, including training and remote learning through the Lloyd’s Academy, both in Bermuda and across Lloyd’s global network.
Bermuda companies fall into two principal categories: companies incorporated by Bermudians to trade primarily in Bermuda and companies incorporated by non-Bermudians for the purpose of conducting business outside Bermuda.
This section is concerned only with the latter kind of company. Companies falling into this category are known as “exempted companies” and are so-called because they are exempted from those provisions of Bermuda law which stipulate that at least 60% of the equity must be beneficially owned by Bermudians.
In general terms, the Companies Act restricts an exempted company from carrying on business in Bermuda, except to the extent that it is so authorised by its constitutional documents and has been granted a licence by the Minister of Finance who will form a view as to whether or not the granting of such a licence is in the best interest of Bermuda.
Having said that, there are certain activities which are expressly excluded from the requirement for a licence.
Such activities include:
- doing business with other exempted undertakings in furtherance of the business of the exempted company which is being conducted outside Bermuda;
- dealing in securities of exempted undertakings, local companies or partnerships;
- carrying on business as manager or agent for, or consultant or advisor to, any exempted company or permit company which is affiliated with the exempted company or an exempted partnership in which the exempted company is a partner or, in the case of mutual funds, selling or distributing their shares in Bermuda.
