Bermuda delegation seeks to lure Canadian captives
A delegation from Bermuda is in Montreal today seeking to drum up captive insurance business for the Island.
Today’s Bermuda Captive Breakfast Seminar follows a similar event at the Fairmont Royal York Hotel in Toronto yesterday.
Interest from the Canadians has grown since the Island signed a tax information exchange agreement (TIEA) with Canada last year.
A spin-off benefit of the agreement is that subsidiaries of Canadian companies are able to repatriate profits to Canada without paying Canadian tax on them.
Beverley Todd, executive vice-president of JLT Insurance Management (Bermuda) Ltd, is one of the speakers with the IDC delegation.
“The TIEA has been a tremendous boost for Bermuda,” she said. “It doesn’t only put us on a level playing field, it gives us an enhanced playing field.
“Barbados has traditionally been the domicile of choice for Canadian captives, but the TIEA puts us in a tax neutral position with Barbados, but we also have other factors in our favour, such as our reinsurance market.”
She added that Canada was effectively an emerging market in terms of captive insurers. Only around 250 Canadian companies had captives, which provide their parents with a form of self insurance, and there was scope for many more, she said.
“There are also companies who have captives established in Barbados who may consider moving,” Ms Todd added.
Other speakers in the delegation were KPMG partner Jason Carne, Aon Insurance Managers (Bermuda) Ltd senior vice-president Susan Lane, Marsh IAS Services Management senior vice-president Nicholas Warren, Corporate Protection Group captive adviser Paul Leighton and BMA director of insurance Shelby Weldon. Another panel speaker was Kevin Klippenstein, chief financial officer of Parrish and Heimbecker Ltd, a Canadian company which established a Bermuda captive last year.
Next year the captive seminar series will take in the Canadian cities of Vancouver and Calgary, as well as visiting Boston in the US.