Large corporates dominate increasing captive activity in Latam

• Captive use increasing but market commanded by large business
• Single parent most common captive structure but cell use rising
• Offshore domiciles such as Bermuda, Cayman and Barbados remain popular, Vermont targets Mexico
• Captive education and fronting capacity pose key challenges for Latam growth

The use of captives by companies based in Latin America is increasing, but a significant gap remains between the number of large corporates using captives compared to the number of medium and smaller businesses utilising them.

Despite proliferating captive use, it is generally considered that the number of companies with captives in Latam is lower than other regions such as the United States and Europe.