St. Vincent captive insurance companies
Under the International
Insurance (Amendment and Consolidation) Act, 1998, five classes of insurance
companies are permitted as follows:
Class 1 Unrestricted license
Permits the insurer to carry on any international insurance business,
including long-term international insurance business.
Eligibility
(a) a company or mutual company constituted under the laws of the State or a
company or mutual company constituted in a country or jurisdiction that is
approved by the Authority.
(b) must have a net worth of at least $200,000 and meet the minimum margin
of solvency prescribed in the regulations.
Class II General License
Permits the insurer to carry on general international insurance business,
but not long-term international insurance business.
Eligibility
(a) a company or mutual company constituted under the laws of the State or a
company or mutual company constituted in a country or jurisdiction that is
approved by the Authority.
(b) must have a net worth of at least $100,000 and meet the minimum margin
of solvency prescribed in the regulations.
Class III Association License
Permits the insurer to carry on general international insurance business and
long-term international insurance business, with two or more owners of the
insurer, and their affiliates, and to carry on no more than thirty percent
(30%) of its international insurance business ( based on net premiums
written) with persons who are not owners of the insurer or their affiliates.
Eligibility
(a) a company or mutual company constituted under the laws of the state
(b) must have a net worth of at least $50,000 and meet the minimum margin of
solvency prescribed in the regulations.
(c) a company which intends to carry on international insurance business not
less than 70% of the net premiums written in respect of which will be
written for the purpose of-
(i) insuring the risks of the owners of the insurer or affiliates of those
owners; or
(ii) insuring risks which, in the opinion of the Commissioner, arise out of
the business or operations of those owners or their affiliates.
Class IV Group License
Permits the insurer to carry on any international insurance business,
including long-term international business, with a single owner of that
insurer and its affiliates, and employees of the owner or its affiliates.
Eligibility
(a) a company constituted under the International Business Companies
Act,1996;
(b) must have net worth of at least $25,000.
(c) it is owned by a single company, trust or partnership, or directly by 15
or fewer individual natural persons who are in association in a common
business enterprise, association, profession or professional undertaking;
(d) intends to carry on international insurance business consisting only of
insuring the risks of the owners or writing annuities for the owners.
Class V Single License
Permits the insurer to carry on any international insurance business,
including long-term international insurance business, with the sole owner of
the insurer, if a company, or with the beneficial owners of the insurer, if
a trust.
Eligibility
(a) a company registered under the International Business Companies Act,1996
or is a trust registered under the International Trust Act, 1996.
(b) must have net worth of at least $10,000.
(c) has a single owner, in the case of a company, or no more than five
beneficiaries, in the case of a trust.
(d) to carry on international insurance business consisting only of insuring
the risks of the owner of such company or the beneficiaries of such trust,
as the case may be, or writing annuities for such persons.
If you have questions about setting up offshore captive insurance company please contact us.
