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The Barbados Domicile
Key Facts

FACT 1. BARBADOS IS THE MOST FAVORABLE LEGAL AND REGULATORY ENVIRONMENT FOR “CAPTIVES”

For insurance and reinsurance companies whose beneficial shareholders are not resident within the Caribbean Community there is:

• No requirement for the company to be owned by its insureds
• No prohibition against ownership by insurance or reinsurance companies
• No restrictions on the amount of business that can be from non-shareholder sources.
• No arbitrary capital requirements based on size
• No unnecessary regulatory compliance requirements

FACT 2. ITS INTERNATIONAL INSURANCE LAWS ARE “STATE OF THE ART”

Also see: www.barbadosbusiness.gov.bb/miib/Legislation/Acts/investment_acts.cfm

• The Exempt Insurance Act
  A captive can be licensed as an Exempt Insurance Company if it insures risks located outside of Barbados, and only writes premium that originates outside of Barbados.
  
  
• The Insurance Act
  Under the Insurance Act, a captive can be licensed as a Qualifying Insurance Company if no more than 10% of its risks and premiums originate from within Barbados.
  
  
• The Companies Act
  Both exempt and qualifying insurance companies are registered under the Companies Act.
  

FACT 3. THE COMPANIES ACTS PROVIDE FOR ALL FORMS OF ORGANIZATION

• Stock companies
• Mutual insurers
• Segregated Cell and Segregated Account companies
• Branch insurers (licensed in Barbados but incorporated elsewhere)
• Societies with restricted liability (partnerships or LLCs)
• International Business Corporations

FACT 4. “GEOGRAPHY” IS NOT A FACTOR

• At least one director will be a resident citizen of Barbados, and the captive appoints a registered agent within Barbados, uses a licensed manager, and maintains corporate, underwriting and financial records in Barbados, satisfying the need for domicile presence
• Board meetings can be held by phone, with no requirement for a Barbados meeting, unless desired to show “mind and management” in the domicile
• For those visiting, easy flights, superb accommodations and recreational facilities make Barbados a domicile of choice

Also see: www.bidc.com

FACT 5: IT HAS CAPITAL AND FILING REQUIREMENTS THAT MAKE SENSE

• Year 1 minimum capital for all types of international insurers: US$125,000
• Year 2 on, minimum capital if premium written (net of reinsurance) is less than US$750,000: $125,000
• Year 2 on, minimum capital if net premium is between US$750,000 and $5,000,000: 20% of net premium.
• If net premium in the preceding year is greater than US$5,000,000 minimum capital is US$1,000,000 plus 10% of the amount of premium above US$5mm.
• Capital can be cash or an irrevocable letter of credit from an approved bank
• Audited financial statements (GAAP basis) must be filed with the Supervisor
• Long term insurers must file an actuarial certificate of adequacy of reserves
• Life insurers may establish separate accounts, and the assets within each account may not satisfy liabilities in another.
• If the liabilities of a general business insurer are more than 200% of its equity, an actuarial review to determine adequacy of reserves is required
• The income earned by an exempt insurer, or a Barbados holding company of an exempt insurer, or a licensed insurance manager, is not subject to Barbados income tax.
• The application fee is US$250 and annual license fee is US$2,500

For more information on captives and other opportunities for international business in Barbados, contact:

Kate Westover
Barbados International Business Representative
E-mail Kate Westover