| May
2008 Captive Insurance Company Reports (CICR) Highlights
The May issue of the Captive
Insurance Company Reports begins with the recent IRS guidance
on Federal Excise Taxes applying on a cascading basis. It was written
by Bruce Wright and M. Kristan Rizzolo of the New York law firm
of Dewey & LeBoeuf. It
discusses in general how FET is imposed on insurance and reinsurance
policies. It then presents Revenue Ruling 2008-15 which addresses
four factual situations and how the FET would be imposed, then Announcement
2008-18 describing the "voluntary compliance initiative"
designed to encourage non-U.S insurers and reinsurers to pay. Dewey
& LeBoeuf conclude with their commentary on the IRS's position,
raising the significant substantive and administrative questions
that are involved.
The second article Captives Exceed 5000 After 2007 Growth
presents the number of captives worldwide by domicile at year-end
2007. CICR restates the year-end 2006 numbers as well, as they have
been changed from last year's reported figures. CICR discusses the
biggest domicile winners and losers, as well as comments from the
captive directors in Utah and Kentucky, both domiciles that showed
unusual and unexpected growth.
We also present the list of the top 10 captive managers. Of interest
has been the net loss in total number of captives managed overall
by both Aon and Marsh, the biggest captive managers, despite both
adding many new captives. We suspect many captives are being shifted
to smaller managers, possibly because of conflict of interest concerns,
in addition to captives being consolidated or shut down.
Hugh Rosenbaum then reports on the recent Luxembourg Rendezvous,
which focused heavily on the upcoming Solvency II standards.
Kick the tires before you buy! To see a sample CICR, View
The January 2008 issue in Adobe Acrobat (pdf). The lead
story in this issue is entitled Insurance Outlook: 2008.
CICR
Index for 1988-December 2007 in searchable PDF
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