France's Captive Insurance Regime Sees Measured Growth Following Reform

France's captive reinsurance framework, introduced through the 2023 Finance Act, continues to generate activity in the domestic market. According to reporting by WTS Global in "France: New Regime for the Set-Up of a Captive Reinsurance Company," the reform established a specific tax and accounting structure for captive reinsurance companies, creating a formal regime intended to support corporate risk retention within France.

As reported by WTS Global, a key component of the framework is the provision pour résilience, which allows qualifying captive reinsurers to establish technical reserves under defined fiscal conditions. Other industry reporting has described this mechanism as central to the regime's objective of strengthening long-term resilience and encouraging French-based structures.

According to reporting by DAF Magazine in "Captives de Réassurance: Un Rapport Parlementaire Confirme le Succès du Nouveau Cadre Fiscal Français," which cited a parliamentary evaluation of the regime, the number of authorized reinsurance captives in France has increased since implementation of the reforms, rising from single digits in 2022 to more than 20 approved entities by 2025, with additional applications under review. Separate reporting by Captive Review in "France on Course to Hit 30 Captives in 'Coming Months'" indicated that the total number of captives could approach 30 if current approval trends continue.

Corporate participation has expanded across sectors, according to trade press reporting, with several French groups establishing new captive reinsurance vehicles and receiving regulatory approvals from L'Autorité de contrôle prudentiel et de résolution.

Despite the recent increase in formations, France's captive insurance market remains smaller than established European captive domiciles. Business Insurance reported in "France Records Highest Captive Growth in Europe" that while France recorded notable recent growth within Europe, it continues to trail jurisdictions such as Luxembourg and Ireland in total captive numbers.

Taken together, industry coverage suggests that France's captive insurance regime is evolving beyond its initial launch phase. Whether the pace of growth continues will depend, according to commentary cited in trade publications, on regulatory stability and sustained corporate interest in domestic risk retention structures.