The Department of Labor (DoL) has granted Meta Platforms Inc, the parent company of Facebook and WhatsApp, an Employee Retirement Income Security Act (ERISA) exemption to allow its captive to reinsure certain US employee benefits.
The United Kingdom has everything in place to provide a captive regime that is prosperous and attractive, but the devil will be in the detail, particularly when it comes to proportionality of future regulation, which will be a “key ingredient” in determining the jurisdiction’s future success.
Airmic CEO Julia Graham has welcomed the Government’s go-ahead for a UK captive regime, and has re-emphasised the need for an “ambitious and competitive framework” that is proportional and risk based.
Aon has committed to launching a captive management company in the United Kingdom, following confirmation from Chancellor Rachel Reeves that a bespoke regulatory regime will be introduced for captive insurance companies.
AM Best has affirmed the ‘A-‘ (Excellent) financial strength rating of Texas-domiciled Quanta Insurance Company, Inc (QIC), the single parent captive owned by Quanta Services, Inc.
Norwegian train company Norske Tog has established a pure captive in its home country, making it the second new captive established in the territory in the last 12 months.
Volkswagen decided to redomesticate its Ireland-domiciled captive to Germany because it “makes more sense” to be closer to company’s German headquarters due to the captive soon being required to abide by IFRS 17 reporting standards.
If the UK introduces a competitive captive regime, the jurisdiction has the potential to be a bigger domicile than France, largely due to its robust insurance ecosystem, according to Stephen Massey, insurance tax specialist at Ernst & Young (EY).
Richard is joined by London-based Stephen Massey, insurance tax specialist at Ernst & Young LLP, to discuss how the international tax treatment of captives has changed over the years and possible consequences of a UK captive regime.