The continued soft traditional insurance market, the ripple effects of healthcare reform in the US and increasing competition from more than 80 captive domiciles requires the Cayman Islands to be more diligent in order to attract new formations, according to the Insurance Managers Association Cayman (IMAC).
The Cayman Islands saw 22 new captives formed in 2015, which was the same number as the previous year.
The total number of B, C and D licensees domiciled in the Cayman Islands as at 31 December 2015 was 708. Of these, 369 were pure captives, 140 represented segregated portfolio companies and 124 formed as group captives.
Combined, these licensees wrote premiums of $12.7 billion in 2015, beating 2014’s $12 billion figure. They also held total assets of $58 billion, an increase of $6.5 billion from 2014.
Despite the number of new formations not increasing in 2015, IMAC chairperson Kieran O’Mahony is confident about Cayman’s ongoing leading position in the captive market.
He commented: “The continuous flow of new formations in the current climate is evidence of the enduring strength of our industry and the domicile. What is also of note is the sustained growth in premium written by Cayman licensees of almost 6 percent and the 12.5 percent increase in total assets held.”
“Both of these rises speak to larger captives writing more lines of business, retaining more risk and most importantly, enhancing profitability. Further, group captives continued to expand during 2015 through organic growth as well as by new activations.”
Cayman claims to be the leading jurisdiction for healthcare and group captives, with 34 percent and 17 percent shares of those markets, respectively.
