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Captive Resource Center
Businesses and Associations
Research & Information
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ESTIMATED COSTS OF ESTABLISHING AN
INSURANCE/REINSURANCE COMPANY IN GIBRALTAR
| Information in Brief |
| Applicable Legislation and Regulations |
The Insurance Companies Ordinance 1987
and supporting Regulations. |
| Double Taxation Treaties |
None. |
| Supervisory Authority |
The Gibraltar Financial Services Commission. |
| Corporate and Regulatory Fees |
Annual Filing Fee of £26. Application
Fee £1000-4000. Annual Fee £2500-12000 (see below). |
| Investment Restrictions |
Admissibility limits based on UK practice. |
| Capitalisation |
No minimum capital,
but Minimum Guarantee Fund to be in accordance with EU requirements:-
Euros 2,200,000, increased to Euros 3,200,000 for Liability,
Credit and Suretyship (Classes 10-15). |
| Local Taxes |
The Gibraltar Government
is shortly to introduce a revised tax system, once approved by
the EC, which will most likely imply a low tax rate of a maximum
of 15%. |
| Local Office Requirements |
Minimum of one shareholder. Minimum
three directors. |
| Minimum Solvency Margin |
18% of Gross Written Premium (GWP)
or 26% of average annual claims (after 3 years) multiplied by the
ratio of claims net of reinsurance to gross claims (min 50%). The
relevant GWP to which these percentages are applied is increased
by 50% for Aircraft, Marine and General Liability (Classes 11, 12
& 13). |
| Reporting Requirements |
Annual audited accounts to be submitted
within six months of the year end together with a copy of the Actuary’s
Report and statutory forms. |
| Official Contact and Address |
Financial Services
Commission
P O Box 940
Gibraltar
Tel: (350) 40283
Fax: (350) 40282 |
| Set-up/First
Year Costs |
| 1. Legal
Costs for incorporation of company (including tax application
and filing fee) |
£500
- £1,000 |
| 2. Insurance
licence application fee |
£1,000-4,000
(see below) |
| 3. Insurance
licence first year annual fee |
£2,500-12,000
(see below) |
| 4. Set up
Fees* |
£15,000 |
| 5. First
year management fees* |
minimum
£60,000 |
| * Estimated –
different managers will have different fee scales, dependent on
the complexity, nature and size of the insurer. |
| Ongoing Annual Costs |
| 1. Taxation |
(currently
under review) 8-15% |
| 2. Insurance Licence annual
fee |
£2,500-£12,000
(see below†) |
| 3. Annual management fees |
minimum
£60,000 |
| 4. Two non-executive Local Directors’
fees (approx) |
£20,000 |
| 5. Auditors’ fees (approx)
|
£8,000 |
†FSC licence fees for insurance companies
are as follows:
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| General Business (open market insurer) |
£3,000 |
£10,000 |
| Long Term Business (open market life insurer) |
£4,000 |
£12,000 |
| General Business (reinsurance only) |
£1,000 |
£3,000 |
| General Business - pure captive (i.e. parent company risks only) |
£1,000 |
£2,500 |
| Long Term Business – pure captive |
£1,000 |
£6,000 |
General Business - Protected Cell Company
Long Term Business – Protected Cell Company
|
£1,000
£2,000 |
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For further information, please
contact:
Chris Johnson ACII
4 Bishop Rapallo’s Ramp
Gibraltar
Tel: + 350 75326
Fax: + 350 75190
Mobile: + 350 58452000
E-mail chris.johnson@gibraltar.gi
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