BVI Captives - Virgin On New Heights

For a General Business company the requirement is $100,000 and for a Long-Term company it is $200,000. (The requirements for a credit life company are lower at just $10,000 capital.

Solvency Margins

Note: ** Net retained premiums are gross premiums less reinsurance premiums.

Allowable assets for solvency calculation purposes are cash, bonds, premium receivables, reinsurance receivables, Letter of Credits and securities (maximum 20% of total assets).

For Long term Business companies the solvency requirement is a straight $250,000 and there are additional requirements for actuarial certification.

How are Captives Formed?

The Incorporation Process

The process can usually be completed in four weeks and is easier to illustrate than narrate:

So What Does It Cost?

The costs involved are best illustrated in the order of the application process:

• Consideration of the licence application by the Supervisor of Insurance requires a $500 fee. This is a once only fee.
• Once the initial application has been approved the costs of incorporating a company are around $700 including the company seal, courier and facsimile charges. Again once only.
• Each company needs a registered agent to act for it and the fee is $350 annually.
• Companies must be incorporated (and additionally have the insurance licence) and the government fee is $1,000 annually.
• Captives require an insurance licence which is $2,000 annually.
• Each captive needs to appoint an auditor which might cost typically $4,000 - $8,000 annually.

Each captive must have a BVI Insurance Manager which for a core compliance service might be $5,000-$10,000 annually but of course each captive has differing needs that must be priced accordingly. We have captives with fees of over $50,000. The cost of preparing the initial license application is generally in the $5-10,000 range.

The Future For the BVI

There is justified excitement and optimism within the BVI financial services sector. It is always exciting to be involved in the early stages of new opportunities and play a part in the growth and maturing of a market.

The BVI has positioned itself firmly in the market for the enterprising company who wants a cost effective captive for tax planning, issue of annuities and the underwriting of profitable lines of risk. As a domicile the BVI has demonstrated its readiness and capability to successfully compete for offshore business and looks forward to attracting new companies both large and small.