Stability and strength
A part of the British Isles but not the UK, fiercely independent, yet warmly welcoming, the Isle of Man is distinctly different from its mainland neighbours. Placed firmly in the middle of the Irish Sea it has a proud history and seafaring heritage. As an offshore jurisdiction it has a culture of opportunity and a climate for growth. This is particularly underlined by the presence of both global and independent captive insurance companies.
Top ten reasons to choose the Isle of Man for captive insurance:
- Realistic and competitive capital/solvency requirements
- Clear and effective legislation
- Flexible and pragmatic Regulator
- Ability to combine insurance and reinsurance activities
- No corporation Tax
- Quality and availability of local professionals
- Outstanding infrastructure and growth potential
- Excellent UK, Ireland and European transportation links
- Triple 'A' Sovereign country rating - Standard and Poor's and Moody's
- 'Europe's most cost-effective domicile' - Reactions magazine (Aug 06)
Capital requirements
While these are the minimum amounts necessary they may be increased at the discretion of the Insurance Supervisor:
- £150,000: General Insurer
- £100,000: Reinsurance Company
- £50,000: Captive Insurer
Fees
Application charge £1,500
Annual charges £3,500
Corporation Tax
All profits tax-free
Domicile comparison
Isle of Man
| Minimum Capital | Annual Fees | Corporate Tax | |
|---|---|---|---|
| Isle of Man | £50,000 | £3,500 | 0% |
| Guernsey | £100,000 | £3,535 | 0% |
| Bermuda | £60,650 | £3,790 | 0% |
| Gibraltar | £1.499m | £2,500 | 8% |
| Ireland | £1.499m | £1,703 | 12.5% |
| Luxembourg | £1.499m | £3,406 | 30.38% |
Legislation
Isle of Man insurance law is devised to provide the framework and support the needs of captive insurers. The principle legislation of the Insurance Act 2007 replaces the original act of 1986. While the administration of Protected Cell Companies is allowable, further developments on legislation is expected.
The Companies Act of 2006 introduced a simplified corporate standard that developed the IBC (International Business Company) model and is aligned and supports recognised measures. This latest standard compliments the previous Companies Acts of 1931-2004 and allows the transference of a company formed under the original Act if required.
The formation of an insurance company is available in four structures:
- Limited Liability Company
- Protected Cell Company
- Limited Liability Partnership
- Companies Act 2006
