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Barbados
Marsh Management Services Barbados Ltd.
Head of Office: Nicholas Crichlow
Sales Coordinator: Nicholas Crichlow
Office Address
White Park House,
White Park Road
Bridgetown, Barbados
West Indies |
Telephone: (246) 436-9929
Facsimile: (246) 436-9932 |
Mailing Address
P.O. Box 1274
Bridgetown, Barbados
West Indies
General Information
| Location |
Barbados is the eastern-most of the Caribbean islands and is located approximately 270 miles north of Venezuela. Barbados has a population of approximately 260,000 and a land area of 166 square miles. |
| Accessibility |
The island is easily accessible on frequently scheduled flights from Miami, New York, Toronto and London. |
| Applicable Legislation |
The Insurance Act or The Exempt Insurance Act |
| Number of Captives |
Approximately 229 as of 31-Dec-2008 |
| Regulatory Agency |
Ministry of Finance - Supervisor of Insurance |
Regulatory Issues
| Acceptable Insurance Subsidiaries |
Single Parent or Association Captives |
| Acceptable Corporate Forms |
Stock or Mutual |
Permitted Business |
All commercial lines, personal lines and unrelated business permitted except local Barbados risk. |
| Direct Insurance Permitted |
All Lines
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Reinsurance Permitted |
All Lines |
| Policy Form and Rate Approval |
Not required |
| Local Office Requirement |
Registered office (One Barbados citizen resident director).
Licensed management company unless self-managed.
One shareholder meeting annually, preferably held locally.
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Capitalization & Solvency Requirements
Insurance Act
| Stock Company |
Minimum Paid-In Capital (Cash or Letter of Credit) $1,500,000 |
| Mutual Company |
Minimum Contributed Reserves $1,500,000 |
| Solvency Margin for General Business |
During the first financial year, assets must exceed liabilities by at least $125,000. After the first year, the solvency margin is related to the prior year's premium size as follows:
Prior Year's Amounts Assets Must
Premium Exceed Liabilities
Up to $1,000,000 $250,000
Above $1,000,001 25% of prior year's
premium |
Solvency Margin for Long-Term (Life) Business |
Assets must exceed liabilities. |
Exempt Insurance Act
| Stock Company |
Minimum Paid-In Capital (Cash or Letter of Credit) $125,000 |
| Mutual Company |
Minimum Contributed Reserves $125,000 |
| Solvency Margin for General Business |
During the first financial year, assets must exceed liabilities by at least $125,000. After the first year, the solvency margin is related to the prior year's premium size as follows:
Prior Year's Amounts Assets Must
Premium Exceed Liabilities
Less Than $125,000
$750,000
$750,001 - 20% of prior year's
$5,000,000 premium
Above $1,000,000 plus
$5,000,000 10% of prior year's premium in excess of $5,000,000 |
| Solvency Margin for Long-Term (Life) Business |
Assets must exceed liabilities. |
| Premium Taxes |
No local premium tax is imposed. Premium for U.S. risk may be subject to Federal Excise Tax of 4% on direct policies and 1% on reinsurance policies if captive is viewed as an insurance company for U.S. federal tax purposes. |
| Intercompany Loans |
Require approval by the Supervisor to be included as an admitted asset for solvency margin calculation. Interest earned may be subject to 30% federal withholding tax. |
| Investment Restrictions |
No specific restrictions. |
| Taxation |
No income tax, capital gains tax, withholding tax, or other direct tax is levied in Barbados. Barbados will guarantee these exemptions for a period of 15 years from the date of the company's incorporation. Thereafter, a tax rate of 2.00% will be applied on the first $125,000 of taxable income only. The current government fee of $2,500 is not payable when the 2.00% is payable. Thirty-year Guarantee of Exempt Status supplied by the government.
As of October 1998, Barbados captives may now elect to be licensed under the Insurance Act rather than the Exempt Insurance Act originally designed for captives. The effect of changing to the Insurance Act will be to make captives taxable in Barbados at an effective rate of 2.8% after the application of certain tax credits. The purpose of the change is to make captives "liable to tax" in Barbados and thus preserve the ability to repatriate earnings back to Canada on a tax free basis under the Canada/Barbados Tax Treaty, or to meet other foreign regulation or taxation tests.
In addition to its treaty with the United States, Barbados has a network of tax treaties with many countries including Canada, Denmark, Norway, Switzerland, and the United Kingdom. |
| Reporting Requirements |
GAAP audited, filed within six (6) months
Auditors Certificate of Solvency
Certified Loss Reserves-required for long-term business and where loss reserves exceed 200% of its capital and surplus accounts.
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