The Astana Financial Services Authority (AFSA) issued a license to the Kazakhstan Energy Reinsurance Company (KERC) to continue the regulated activities of effecting contracts of insurance and contracts of insurance as a captive insurer, after relocating from Bermuda.
The transfer of incorporation of the captive insurance firm from Bermuda where it had been operating since 2004, to the Astana International Financial Centre (AIFC) marks a “positive process” of the relocation of Kazakhstan capital and assets from foreign jurisdiction.
According to AIFC regulations, the transfer of incorporation allows KERC to continue to have all the property, rights and privileges, and be subject to all the liabilities, restrictions and debts, that it had before the continuation.
Kazakhstan Energy Reinsurance Company is an affiliated company of KazMunayGas, carrying on insurance business within KazMunayGas and the National Welfare Fund Samruk-Kazyna, which is its ultimate parent holding company.
The AIFC has implemented a regulatory regime that allows attracting capital to the country, including repatriation of assets.
The transfer allowed KERC to transfer all legal rights and liabilities to the new entity, which is the same legal person as the originally overseas-incorporated company, as well as become the subject of tax preferences and legal regulation in accordance with international standards.
Mukhtar Bubeyev, acting chief executive officer of the AFSA, said: “The transfer of incorporation of the Kazakhstan Energy Reinsurance Company to the AIFC gives a clear message that the legal framework of the AIFC supports Kazakhstani companies willing to relocate operations and assets to Kazakhstan through the AIFC, where a regulatory regime is well placed for doing financial services business and the protection of investments.”
Aigul Beknazarova, managing director, financial controller of KazMunayGas, added: “The AIFC opens new opportunities for large companies conducting international business. This is a good opportunity, and we are pleased to take advantage of what this jurisdiction offers.”
“This is not our first transaction on this platform, but we took advantage of the opportunity to transfer of company incorporation to the AIFC jurisdiction for the first time. We hope that the AIFC will continue to be a flexible and convenient platform for business.”