Bermuda, the world’s first and premier captive domicile, is located 650 miles east-southeast of Cape Hatteras, North Carolina. Decades of a collaborative business culture which has seen government, industry and regulators work together for the Island’s commercial success has created a highly respected and successful financial centre, recognized for worldwide standards of compliance, regulation, transparency and infrastructure.
Key Bermuda advantages:
Bermuda is globally respected for its leadership and proven record on compliance and transparency. The jurisdiction has more than 90 treaty partnerships with nations around the world and in 2016, the European Union awarded Bermuda’s commercial insurance and reinsurance market full equivalence with Europe’s Solvency II insurance regulatory regime.
Major reinsurance centre
Bermuda joins New York and London as one of three major insurance centres, is the most important property catastrophe market, and is the largest captive insurance market. The island also has the world’s largest share of ILS listings ($20 billion, more than 75 percent by Q1 2017).
Bermuda is home to a wealth of world-class talent. Auditors, financial advisers, lawyers, IT specialists, actuaries, re/insurance underwriters, brokers, fund administrators, corporate secretaries, and a full gamut of support services operate in the City of Hamilton.
Bermuda has a track record of ‘firsts’—the world’s first captive insurers, the first true excess liability carriers, the first property catastrophe insurers, and “cat” bonds. In 2009, Bermuda was the first offshore jurisdiction to be included on the OECD’s white list of compliant, transparent countries.
Legal and political stability
Bermuda’s legal system marked its 400th anniversary in 2016. With courts dating back to 1616, the island uses English common law, with recourse to the UK Judicial Committee of the Privy Council. Bermuda’s government is a stable Westminster-style parliamentary democracy.
Bermuda is a tax-neutral jurisdiction, with zero income, corporate, withholding or capital gains taxes. Its consumption-based system does, however, levy payroll tax, import duties, social insurance, and custom duties on goods and services—a major component of the island’s tax revenues.