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Malta
Marsh Management Services Malta Limited.
Head of Office: Angela Wright
Sales Coordinator: Granville de Cruz
Office Address
Floor 1
Strand Towers, 36 The Strand
Sliema, SLM 1022, Malta |
Telephone: (356) (0) 2342-3000
Facsimile: (356) (0) 2342-3333 |
Mailing Address
Marsh Management Services Malta Limited
Floor1
Strand Towers, 36 The Strand
Sliema, SLM 07, Malta
General Information
Location |
The Maltese Islands are situated in the Mediterranean Sea, about 100 km from Sicily and 290 km from North Africa. They consist of Malta (390 sq km) Gozo (65 sq km) and Comino (2.5 sq km). The population is around 400,000 and is homogeneous with its own identity and language. The official languages are Maltese and English with most of the people also fluent in Italian. Malta is a member of the European Union. |
| Accessibility |
Regular daily flights from all European cities as well as ferry service from Italy and North Africa. |
| Applicable Legislation |
Insurance Regulation:
Insurance Business Act 1998.
Protected Cell Company Legislation introduced in 2004.
Malta licenses both direct writing insurance captives and reinsurance captives.
Direct writing captives are governed by the European Union Insurance Directives as implemented into the Maltese Law.
Malta also has in place Migration and Amalgamation Legislation
Taxation:
Malta has a standard tax rate of 35%. However, if a company underwrites risks situated outside Malta, it is able to operate the foreign income account and non-resident shareholders may benefit from the refund of tax on distributions from this account, thus reducing the tax rate to 5%.
Malta has Double Tax Treaties with numerous countries.
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Number of Captives |
46 as of 12/31/2008 |
Regulatory Agency |
Malta Financial Services Authority |
Regulatory Issues
| Acceptable Insurance Subsidiaries |
Pure and Associated captives and Insurance Companies.
Reinsurance captives - single parent or Association parent.
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| Acceptable Corporate Forms |
Company limited by shares.
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| Permitted Business |
Direct captive - Life and non-life business must be transacted in separate companies.
Reinsurance captive - All classes of life and non-life business.
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| Direct Insurance Permitted |
A direct writing captive can write on an admitted basis throughout the European Union. |
| Reinsurance Permitted |
All lines - within a Reinsurance Captive.
Within a direct writing company, limitations are imposed by regulators on the quantum of reinsurance that may be accepted. |
| Policy Form and Rate Approval |
Direct writing Captive.
Rating approval necessary for Life Captive, subject to Actuarial sign off. |
| Local Office Requirement |
Registered office
Licensed Insurance Manager |
Capitalization & Solvency Requirements
Insurance Act
| Capitalisation |
Direct Writing Captive - Euro 2/3 million minimum paid-in capital (cash or equivalents only) depending on classes or cover.
Reinsurance Captives - Euro 3m Minimum paid-in capital. |
| Solvency |
The precise solvency margin required is calculated in accordance with regulations. As a general rule of thumb 36% of gross premium income must be matched by free reserves (paid-up share capital and retained profits). This percentage may be reduced depending on the level of risk ceded to reinsurers (subject to a maximum reduction of 50%). |
| 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 purpose.
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| Intercompany Loans |
Loans are allowed with the approval of the MFSA. However, a limited amount would apply to the Solvency calculation. |
| Investment Restrictions |
No specific restrictions, but the assets representing technical reserves must take into account the type of business carried out by the company in order to ensure the appropriate level of security, yield and liquidity of the company's investments. |
| Reporting Requirements |
Quarterly returns, together with Audited Financials.
Certified Loss Reserves required for long-term business. |
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