Captive Insurance

Captive Insurance Companies are referred to under Maltese legislation as “Affiliated Insurance Companies” (“AIC’s") and are primarily regulated by the MFSA under the Insurance Business Act 1998

Under current legislation, AIC’s together with other insurance companies, reinsurance companies, insurance managers and insurance brokers are able to be formed as or converted to a Protected Cell Company (“PCC”) with the approval of the MFSA. The effect is that the PCC has separate and distinct cells so that the assets and liabilities of a particular cell is segregated from those of other cells and from other assets and liabilities of the company and this thereby protects a cell and its assets against claims against another cell.

The availability of the passport regime which exists amongst members of the EU makes Malta an attractive jurisdiction within which to domicile an AIC.

AIC’s have the benefit of the numerous Tax Treaties which exist between Malta and other EU member states and also Non-EU states which together with the imputation tax system and tax refund mechanisms maximise the tax efficiency of being domiciled in Malta.

AIC’s may insure risks originating from other entities such as:

• Parent companies
• Associated or group companies
• Undertakings having common membership up to the ultimate beneficial owner level with the AIC amounting to at least 51%
• Individuals or other entities having a majority ownership or controlling interest in the AIC
• Members of trade industry or professional associations or organisations insuring risks related to the particular trade, industry or profession

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