In reality, Lloyd suggests that an increasing number of captive


owners are now seeking to appoint independent, local directors with suitable insurance experience to their boards and to hold annual board meetings in the territory. With the flagship Four Seasons Resort and golf course in Nevis now fully operational, together with a number of other excellent boutique accommodation and fine-dining restaurants, why wouldn’t captive owners take the opportunity to combine business and pleasure on this beautiful island. In line with the reopening of the Four Seasons Resort, American Eagle has also reinstated its commuter flights from San Juan, Puerto Rico to Nevis. St Kitts also has the Eagle connection from San Juan, Puerto Rico, but the international airport further allows direct and convenient access to the Federation of St. Kitts & Nevis from Europe and mainland US, with a charming ferry ride connecting the two sister islands.


Furthermore, the NIIO, 2004 does not impose a statutory requirement


for local banks to be utilised, although the likes of The Bank of Nevis International Limited are always willing to assist with international bank accounts for licensed and regulated insurance entities. Again, the choice is the captive owner’s and whether it wishes to maintain its existing banking arrangements locally with the parent company, further afield or even a combination of both, the legislation provides that flexibility to make it the captive owner’s own personal choice.


The minimum capitalisation requirements, too, allow smaller


businesses to enter the captive arena without being priced out by incongruous and prohibitive professional and regulatory fees and set-up costs commonly required in certain other jurisdictions. Lloyd


adds though that the majority of AMS’s clientele elect to capitalise significantly in excess of minimum requirements under the legislation, whilst the solvency margin and admissible asset criteria within the solvency calculation combine with the minimum capitalisation requirements to ensure prudent, regulated operations and adequate collateralisation commensurate with the individual exposures for each and every licensed entity.


The captive insurance industry traditionally counters the market


cycles in the conventional insurance sector, but the fall-out from the global economic meltdown has added further impetus to captive formations around the world. Many business owners have lost faith in traditional insurance carriers that have abandoned the very policyholders who had remained loyal to them in previous years and, equally, poor investment returns have also impacted underwriting results commonly used to artificially reduce premiums, all of which have combined to fuel the current demand for new captives.


As Lloyd concludes: “All in all, the signs remain very positive for the continued growth of captives generally and for the continued development of Nevis as a major domicile of choice for captive insurance business and to build on the solid foundations laid to date in the jurisdiction.”


Bernadette Lawrence is director of development and marketing


at Nevis Financial Services. She can be contacted at: blawrence@ nevisfinance.com


Derek Lloyd is director and insurance manager at AMS Insurance Division. He can be contacted at: dlloyd@amsbvi.com


US Captive . April 2011 49


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