Rules for Pure Captives - 2016

Mauritius issues Captive Insurance Rules

In December 2015, Mauritius enacted the Captive Insurance Act that paved the way for it to be a domicile of choice for companies in the African and Asian region looking to set up a captive. The Act currently applies only to “pure captives”, meaning the business of undertaking liability restricted to the risks of parent and affiliated corporations.

Following the enactment, the Financial Services Commission Mauritius issued on 25 April 2016, the accompanying Rules which will facilitate the conduct of ‘pure captive business’ in Mauritius. 

The Rules layout the requirements for solvency, assets, capital and other regulatory issues for captives domiciled in Mauritius.

One of the requirements that are seen as favourable for prospective insurers is that a pure captive insurer shall maintain a minimum paid up capital of not less than 3 million rupees (USD 85,000).

Also, a change to the Income Tax Act provides for an attractive tax holiday on income derived by captive insurers for a period not exceeding ten years.

Mauritius as a captive domicile of choice for African businesses

Mauritius has successfully established itself as a leading international financial centre. The country is already home to multinational companies, global investment funds, international banks, legal firms and audit firms. There are numerous reasons for Mauritius to be used as a captive domicile of choice for African businesses:

  • A conducive and politically stable environment for doing business.
  • Ultimate court of appeal is the Judicial Committee of the Privy Council in the United Kingdom
  • No foreign exchange control allowing for free flows of capital funds without central bank approval
  • Availability of a pool of accountants and finance professionals conversant in both English and French
  • Member of the International Association of Insurance Supervisors (IAIS) guidelines
  • Competitive operating and staff costs
  • Developed reinsurance market
  • Ranked first in the Ease of Doing Business Index of the World Bank and the Mo Ibrahim Index for Good Governance in Africa.

Cim Global Business as your captive management services partner

Cim Global Business is well placed to assist insurance managers, and their clients, who are looking to set-up operations in this new captive domicile, through a low risk and low cost entry strategy. 

The firm is the leading fund administration and corporate service provider in Mauritius, with offices in Mauritius, Singapore and South Africa. We have over 250 staff dedicated to the success of our client-base. Cim Global Business has the adequate resources and expertise to assist captive insurance managers and their clients to set up and administer their captives through:

  • Team with relevant and in-depth Captive Insurance experience
  • Experienced Head of Operations with significant international experience in Captive Insurance market, having worked in the Cayman Islands
  • Supported by a Professional Services Outsourcing unit which offers accounting and general back-office solutions for captives based in high-cost jurisdictions.

For more information, feel free to contact:

Shaun Geils - Head of Operations, PSO
Email: shaun.geils@cimglobalbusiness.com

Edan Latzelsberger - Managing Director, PSO
Email: Edan.Latzelsberger@cim.mu

Rehma Imrith - Managing Director, CFAS
Email: Rehma.Imrith@cimglobalbusiness.com