Hong Kong’s first international captive owner and first new formation in seven years is a “promising” development for the domicile, while Australia is expected to keep producing new captive owners.

The latest episode of the Global Captive Podcast featured AXA XL’s Evelyn Pang, Stephen Nguyen and Shiwei Jin and focused on recent developments in the Asia Pacific region.

Evelyn Pang, AXA XL’s multinational solutions & captive manager in Asia, brought listeners up to speed on what to look out for next as Hong Kong welcomed Wayfoong (Asia) Limited, and why China remains the jurisdiction’s key target for new formations.

“This development indicates the growing confidence of multinational finance firms like HSBC in setting up their new captive vehicle in Hong Kong,” Pang said.

“Despite the past turmoil, many still recognise Hong Kong’s strong foundation in investment and trade, coupled with its resilience, making it an ideal location for global enterprise to access insurance, reinsurance and risk management services.”

Pang also recently attended the Captive Insurance Forum in Beijing, hosted by the Hong Kong Insurance Authority for the second consecutive year.

“Besides the China based state-owned enterprises, the privately-owned enterprises interested in setting up their captive were also invited to exchange views and strengthen the communication with professionals on how captives can enhance the overall risk management functions of their organisations,” she added.

“Notably, a lot of the enterprises attended were from the energy and automobile sectors.”

Australia

In Australia, Nguyen said he expects the number of captives to keep on climbing within the corporate community.

According to Ci DataHub, there are currently 73 captives domiciled around the world owned by Australian businesses.

 ”There’s definitely room for growth in Australia, especially given the risk maturity of insurance buyers we have here,” Nguyen said on the podcast.

“Right now we’re sitting at about 70 captives, but I see a real opportunity for that number to climb, particularly as we move into a phase of the insurance cycle where pricing pressures are starting to build.”

There is also a growing interest in cell solutions for companies that perhaps do not have a “traditional captive profile”.

“This model is particularly attractive for businesses looking to test the waters,” he added.

“We’re seeing this whether they’re looking to underwrite a single line of risk, pilot a new retention strategy, or gain experience with alternative risk financing.

“The Australian captive market is not just growing in size, it’s maturing in sophistication. “Whether through full captives or protected cells, the conversations we’re having are increasingly about alignment with broader business strategy, resilience and long-term value creation.”

Listen to the full episode focused on the APAC captive market on the Global Captive Podcast here, or on any podcast platform – just search for ‘Global Captive Podcast’.