East Isles Re is a segregated accounts captive insurance company domiciled in Bermuda, which holds a unique position as the world’s captive leader.
Bermuda’s regulators understand captive business
High concentration of specialized knowledge and services
Stable economy, favorable financial environment
Bermuda’s long history with captive insurance started over 50 years ago. In fact, the term “captive insurance” was coined by Frederic Reiss, who established the first captive insurance company in Bermuda in 1962 for his client, a steel company in Ohio. In the 1970s, Bermuda became the first country to write comprehensive legislation, licensing, and oversight regulation, formally establishing the captive industry.
As the captive pioneer, Bermuda has established a unique environment over the decades. It has a multitude of captive managers, lawyers, accountants, auditors, and others necessary for the creation and day-to-day running of captives. Insurance, banking, and financial services are all very important to the island’s economy, so Bermuda’s political leadership is committed to a stable regulatory environment and well-developed infrastructure. Designed more than 50 years ago, Bermuda’s captive laws remain the “gold standard” to this day.
Today, more than 700 captives are domiciled in Bermuda, making it is the undisputed captive center of the world. Clients of East Isles Re enjoy Bermuda’s unparalleled legal and regulatory benefits, as well as its long history and deep base of knowledge. All this translates into ease of doing business and turnkey implementation.
- Oldest self-governing British Overseas Territory
- Located 600 miles east of North Carolina
- First captive was established in Bermuda, giving it a depth of experience in one location – legal, taxation, accounting, auditing, and operations management
- Today, Bermuda is the world’s largest captive center and the third-largest insurance market, behind London and New York
World-Class Financial Center
- Global – Behind New York and London, Bermuda is the third-largest insurance center in the world.
- Regulation – Bermuda offers an effective, flexible regulatory environment. The Bermuda Monetary Authority is responsible for regulation of the insurance industry and monitoring for potential solvency problems among insurers and have the authority to restrict the operations of insurers not meeting their standards.
- Political and economic stability – Bermuda enjoys a highly developed political environment and stable economy, making it easy to do business in. Its political structures are built on a stable foundation.
- Professional services – Due to its long history with financial services, there is a multitude of excellent professional services in Bermuda, including banks and law, audit, and accounting firms. It also offers a high degree of insurance expertise and technical knowledge.
Bermuda and Taxes
Bermuda is an income-tax neutral financial center, meaning that captives domiciled there are not subject to the direct taxation of profits or capital gains. However, there may be taxes in the jurisdiction where members are located, and they may be subject to taxation under their own tax rules on any income and capital gains.
As a Bermuda-domiciled insurance company, East Isles Re is not subject to U.S. taxes. However, East Isles requires each segregated cell to be treated as a U.S. corporation, under Section 953(d) of the Internal Revenue Code. Accordingly, each segregated cell is subject to U.S. federal income taxes.