Captive insurance company capitalization requirements

Our research across most popular captive insurance jurisdictions shows that Nevis could be the best place to setup a tax free offshore insurance or reinsurance company in terms of costs and flexible statutory requirements. The different classes of International Insurance Business offered in Nevis are: Long-term Insurance, General Insurance, Reinsurance and Captive Insurance.

Nevis Captive Insurance License - Outstanding Features

  • Competitive professional and regulatory fees
  • Local Attorneys are not required
  • Local Bank is not required
  • Local Directors are not required
  • Competitive minimum capitalization requirements for the different insurance entities
  • Tax Neutral Jurisdiction
  • User friendly application forms and licensing process
  • 4-6 week timeframe for licence approval (incorporation and bank account opening extra 8 weeks total)
  • Nevis is a Common Law jurisdiction. The final court of Appeal is the Privy Council in London.
  • Nevis International Insurance Ordinance 2004 (NIIO) as amended in 2009
  • Nevis Business Corporation Ordinance 1984 as amended
The Minimum Paid up Share Capital for:
  • Long-term Insurance - EC$500.000
  • General Insurance - EC$500,000
  • Reinsurance - EC$200,000
  • Captive Insurance i. Single Owner Captive - EC$27,000 ii. Less Than 5 Owners Captive - EC$54,000 iii. 5 or more Owners captive - EC$135,000
This is the amount by which an insurer's assets must exceed its liabilities. The relevant funds can be invested in admissible assets such as: Cash, Debt Securities (Government and Corporate Investment Grade), Precious Metals, Irrevocable Letters of Credit, Equities, Mutual Funds, Commercial Loans, Premiums Receivable and Reinsurance Receivables, and any such other investments as may be approved in advance by the Registrar of Insurance. The minimum margins of solvency are prescribed as follows:
  • Long Term Insurance Business - the minimum paid up share capital;
  • If the Insurer is carrying on Insurance Business Other than Long-term Insurance Business - The margin of solvency should be at least the minimum amount of paid up capital. If the net retained premium of the insurer does not exceed US$5,000,000, the prescribed amount is 20% of the net retained premium. If the net retained premium exceeds US$5,000,000, the prescribed amount is US$1,000,000 plus 10% of the amount by which the net retained premium exceeds US$5,000,000;
  • For Long-term Insurance Business and Other Insurance Business - it's the aggregate of the amounts required in respect of both categories of insurance business;
  • If the Insurer is carrying on more than one class of Insurance Business - The margin of solvency shall be the aggregate of the prescribed fees in respect of each class of insurance business.

NO taxation applies in Nevis for licensed reinsurance and insurance captives

The Auditor does not have to be a Nevis company but must be pre-approved by Nevis Financial Services Departments and audited accounts need to be submitted within 6 months of the end of the financial year.

Unitrust Capital Corp. will guide you through all stages of the licensing process, provide among other services incorporation and setting up of the Registered Agent/Registered Office services through our close associates in this jurisdiction.

Please send us your business plan, and we will advise you the relevant costs and formalities to obtain an insurance license in Nevis. Then we could proceed with the actual licensing process upon certain terms and conditions.

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