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Group heads to Canada in search of captive business

A delegation from Bermuda will fly out to western Canada next week to try to drum up some captive insurance business for the Island.

The group, which includes rival insurance managers working together to promote the Island as a domicile, will hold breakfast seminars in Vancouver and Calgary next week.

Panellists will include Kilian Whelan, CEO of JLT Management (Bermuda) Ltd; Susan Lane, senior vice-president, Aon Insurance Managers (Bermuda) Ltd; Nicholas Warren, senior vice-president at Marsh IAS Management Services (Bermuda) Ltd; David Gibbons, director, Captive Assurance Unit, at PricewaterhouseCoopers and Shelby Weldon, director of insurance licensing and authorisation at the Bermuda Monetary Authority.

During Wednesday’s meeting at the Westin hotel in Calgary, the group will be joined by Jana Dartnell and David Platt, representatives of Canadian natural gas company Encana Corp, which redomiciled its captive insurance company from Barbados to Bermuda.

Mr Whelan said Bermuda had become significantly more attractive for Canadian companies since a tax information exchange agreement (TIEA) came into effect after being ratified by Canadian lawmakers in July last year.

“It’s put Bermuda on a level footing with Barbados,” Mr Whelan said, “specifically with regard to Canadian companies with foreign subsidiaries.

“The benefit is that Canadian companies can put in place a captive programme for their foreign subsidiaries and the dividends can be sent back to the Canadian parents without being taxed.”

He added that Barbados had traditionally been the domicile of choice for Canadian captives because of the double-taxation agreement between the two countries, a benefit that Bermuda had not been able to match until last year. As a result, he estimated that Barbados was home to around 200 Canadian captives compared to Bermuda’s 25 or so.

Vancouver-based mining company Teck was the first Canadian company to redomicile its captive insurer from Barbados to Bermuda last September.

Captive insurers provide insurance to their parent corporations and Bermuda is the leading captive domicile in the world, with more than 800 active captives.

Around 40 people have already signed up for Tuesday’s event at the Four Seasons Hotel in Vancouver, while some 70 people are to set to attend the following day’s event in Calgary.

Mr Whelan stressed that the aim of the seminars was not simply to persuade Canadian companies to move their Barbados captives to Bermuda.

“It’s not simply about redomestication, it’s about educating people about captives and looking for new markets,” Mr Whelan said.

“It’s about competitors going together to create new demand, showing Bermuda putting its front foot forward. It’s good for people to see the industry working together.”

The Canadian audiences will include representatives of corporations who may have captives or be interested in setting one up, and their service providers.

The delegation will fly out to Vancouver this weekend.

On a mission: Members of the delegation who will represent Bermuda at two seminars on captive insurance in Canada next week. Pictured are Killian Whelan CEO of JLT, Nicholas Warren, senior VP at Marsh IAS Management Services (Bermuda), David Gibbons, director, Captive Assurance Unit, PWC, and Susan Lane, senior vice-president at Aon Insurance Managers (Bermuda) Ltd

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Published February 08, 2012 at 1:00 am (Updated February 08, 2012 at 8:49 am)

Group heads to Canada in search of captive business

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