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Bermuda Captive Insurance

Bermuda is the principal domicile of captive insurance companies. More reside on Bermuda than anywhere else. Captives in Bermuda are 65% owned by American interests, 18% by European, 10% by British, 2% by Far Eastern, 2% by Canadian and 3% by other countries.

In Bermuda there are many categories of captive, all of which serve different clientele and purposes. There is also a single general class of companies dealing with captives.

Agency - Formed and owned by one or more independent insurance agents to write high quality risks that they control.

Association - Formed and owned by members of a common industry or trade association to share risks of that industry among its members.

Captive of insurer - Single parent captive by a professional insurer or reinsurer.

Captive writing 3rd Party business - Captive writing a portion of its net premium from risks unrelated to the business of its owners and/or affiliates.

Composites - Insurance company writing a composition of life and general business.

Finite Insurer and/or Reinsurer - Company writing unrelated risks where there are (a) clearly defined aggregate limits and (b) premiums that reflect the underwriter's anticipated investment income.

Health Care Captive - Owned by a hospital or health maintenance organization (HM0) and writing the risks of its owners and/or affiliates.

Long Term (or Life) Insurer and/or Reinsurer - Insurance company writing life risks as a direct writer and/or insurer.

Multi Owner Captive - Owned by two or more unrelated persons or organizations and writing the risks of its owners and/or affiliates.

Professional Insurer and/or Reinsurer - Insurance company writing unrelated risks as a direct writer and/or insurer.

Pure Captive - Single parent captive writing only the risks of its owner and/or affiliates.

Rent-a-Captive - Owned by unrelated persons or organizations and providing captive facilities to others for a fee. Contract documentation is usually detailed and voluminous and there is substantial work in maintaining individual program funds in segregated accounts, etc.