Labuan licensed six new captive insurance companies last year, as total gross premium grew to $400.5 million, according to figures from the Labuan International Business and Financial Centre (Labuan IBFC).
Labuan IBFC’s inaugural Market Report 2018 also revealed that one captive dissolved in 2018, meaning that as of 31 December 2018 there were 48 captives in the domicile.
All six of the new captives set up last year were Asian based.
The captive market also saw continued growth in total gross premium, which rose 11 percent to $400.5 million last year.
With 67.4 percent of premiums, foreign business continues to dominate the captive market.
The domicile's insurance sector experienced sustained growth as a whole, with total gross written premiums rising 19.1 percent year-on-year to $1.7 billion.
The Labuan Financial Services Authority (FSA) said that the growth in 2018 “underscores Labuan IBFC’s growing prominence as a regional financial hub, facilitating intra-Asian trade, investments, and asset intermediation”.
The FSA added: “The results show that despite challenges and changes in global operating environment, investors’ trust and confidence in Labuan IBFC remains intact; and moving forward the Labuan IBFC is expected to benefit from international regulatory changes introduced to ensure substance and transparency in all cross-border transactions.”
