Bahamas

The establishment, licensing and operation of captive insurance companies are governed by the External Insurance Act 2009 as amended, and by subsidiary legislation.

The principal features of the regulatory requirements are:

• Captives must be registered as External Insurers under the Act - registration renewable annually
• Company name subject to approval of Registrar
• Minimum of two directors
• Captives must appoint a resident underwriting manager
• Annual audit of all captives to be submitted to the Registrar
• Actuarial valuation of life insurers at least every 3 years

Capital, Margin of Solvency and Government Fees

Companies carrying on long-term business must have paid-in capital of at least US$200,000.

Companies carrying on general business must have paid-in capital of at least US$100,000 and must maintain a net worth based upon its net premium income as follows:

Government fees are payable as follows:

Application

When applying for an insurance license, the applicant company must provide a detailed business plan and financial projections.

Applicants should allow approximately 6 weeks for the establishment of new external insurers.