CAPTIVE INSURANCE BUSINESS

The legislation of Mauritius lays out the framework to facilitate the establishment of captive insurance business. Companies with a Category 1 Global Business Licence duly licensed by the Financial Services Commission. Captive Managers can apply for captive insurance licences as companies that have been licensed to provide specialised services in this segment. ​Contact us to discuss a Captive.

Both pure captives and captives insuring second party and third party risk may be licensed. In scenarios involving third party business the captive should illustrate access to the requisite underwriting and analytical capacity, sound financials and a solid track record. Full specifics of each program to be underwritten shall be submitted for approval to the (FSC) Financial Services Commission. Cell captives and rent-a-captive and are also allowed.

Captive insurance companies must acquire a licence to conduct captive business. The Captive Insurance Company is also permitted to assign a licensed Mauritian Management Company and a Principal Representative, accountable to the Commission.
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Types of captives permissible
​ (a) Captive General Insurance Business

  • Minimum Paid-Up Capital: US$ 100,000
  • Margin of Solvency: Surplus of assets over liabilities of US$100,000 or 15% of net premium income, whichever is higher.
  • Liquidity Ratio: The value of the recruited property should not be less than 75% amount of liabilities payable.

(b) Captive Long Term Insurance Business

  • Minimum Paid-Up Capital: US$ 250,000
  • Margin of Solvency: Liabilities not to exceed amount of long term insurance fund.

(c) Captive General and Long Term Insurance Business

  • Minimum Paid-Up Capital: US$ 350,000

Reinsurance/Filing

Captive insurance companies are mandated to be reinsured in excess of reasonable and prudent retention norms if the Commission is dissatisfied that the captive has access to sufficient security without needing reinsurance.

The Commission requires the annual filing of: 
  • Audited financial statements.
  • Certificate of margin of solvency.
  • Liquidity ratio certificate.
  • Actuarial valuation of adequacy of premiums and loss reserves for long term business.
  • Declaration of Principal Representative as to accuracy of accounts.

Incorporation

To form a captive insurance company an application should be delivered to the Commission. Applications must be submitted formally via a registered Management Company and should be made on prescribed application forms and accompanied by: 

  • A certificate from a law practitioner practising in Mauritius to the effect that the application complies with the laws of Mauritius.
  • A copy of the Constitution of the company together with the prescribed statutory forms.
  • The name of a principal representative who act as the executive of the designated captive management company.
  • A formal Business Plan.
  • Actuarial report for long term licences, which certifies that:
    (i) the financing of the captive is sufficient to cover both technical reserves and the required margin of solvency;
    (ii) the Business Plan is actuarially sound as it relates to long term business;
    (iii) the name of the appointed Captive Management Company.