Bermuda offers a well-developed legal framework that allows for the seamless incorporation/formation of Bermuda vehicles and subsequent or contemporaneous creation of group structures. The flexibility of Bermuda’s law, including with respect to its company statute and partnership legislation, means that service providers are able to work with clients to reach their commercial objectives.

Bermuda is an income tax neutral financial centre, meaning that structures domiciled there are not the subject of direct taxation of profits or capital gains in the jurisdiction. This avoids adding a layer of complexity to international structures. However, it should be remembered that there may be taxes in the jurisdictions where shareholders or investors are located and they may be subject to taxation under their own tax rules on any income and capital gains.

The Island has a strong (re)insurance industry and has emerged as the leader in the insurance-linked securities (ILS) sector. This was through a commitment to embrace and encourage the ILS sset class by creating and maintaining the right legal and regulatory environment in which those structures could thrive. During the first quarter of 2016 Bermuda based special purpose insurers accounted for 62% of the new insurance volume and the average deal size for ILS transactions in Bermuda was $228 million, the highest on record since Bermuda entered the ILS space in 2010¹.

With international banks, accounting firms, offshore legal powerhouses, insurance managers, investment managers and administrators, Bermuda is able to meet all of a client’s service needs within the jurisdiction. Being able to operate in an environment with the ability to physically meet and establish working relationships with service providers, has undoubtedly been an attractive proposition.

For firms which already have a (re)insurance presence in Bermuda, we are seeing continued interest in expanding their offering to include ILS. This offers clients the chance to build a new line of business within a familiar legal and regulatory framework with service providers (or their affiliates) well versed with how they do business.

Read More

Share
Twitter LinkedIn Email Save as PDF
More Publications
21 Jan 2020 |

Bermuda Law & Practice

First Published in Chambers Insurance & Reinsurance 2020 Guide

16 Jan 2020 |

Pensions landscape to shift significantly

Sweeping changes to Bermuda’s pensions regime are underway that could result in private-sector emp...

7 Jan 2020 |

Arbitration of employment disputes: what employers and employees need to know

Arbitration is a form of alternative dispute resolution whereby parties forgo their right to sue in ...

16 Dec 2019 |

Americas Restructuring Review 2020

This chapter discusses the defining features of Bermuda’s insolvency landscape and the primary ins...

10 Dec 2019 |

The Insolvency Review – Seventh Edition

The seventh edition of The Insolvency Review  offers an in-depth review of market conditions and in...

5 Dec 2019 |

BMA forms view on cannabis related risk

The Bermuda Monetary Authority has confirmed that it will not object to BMA-supervised entities cond...

2 Dec 2019 |

Implications of the Privy Council’s decision in the ‘belonger’ case

Bermuda’s final appeals court has handed down its decision in a long-running case which had the po...

21 Nov 2019 |

BMA releases guidance on outsourcing

For many companies, outsourcing is essential in allowing them to cost effectively and efficiently pr...

15 Nov 2019 |

New Family leave rights on horizon

Working families will benefit from more generous leave entitlements in the New Year. When it comes i...

31 Oct 2019 |

What to expect from the new Wage Commission

A Wage Commission is to be established under recent legislation, in a step which may lead to a minim...