Following the UK voters' decision to exit the European
Union, several financial services firms, including insurance
companies, are in the process of analyzing possible contingency
plans to shift their European business to another member state,
with Malta posing as an attractive option in this regard.
What does Malta have to offer?
Several factors render Malta as an attractive jurisdiction,
including its location in the centre of the Mediterranean, stable
political situation, excellent communications, and its
well-educated, adaptable and English-speaking work force. There are
no restrictions on movement within the EU, since Malta is a
Schengen member state.
Further factors which attribute to Malta's appeal as a
destination of choice are:
Malta is the seat of various international (re)insurance
undertakings, serviced by highly-qualified and highly-experienced
The European Passport
(Re)insurance undertakings whose head office is in Malta are
able to passport their Maltese licence into any EU/EEA Member
State. (Re)insurance undertakings may opt to passport on a freedom
of services basis or freedom of establishment (branch) basis. A
branch of a non-EEA (re)insurance undertaking does not enjoy
Re-Domiciliation and Mergers
Maltese law permits (re)insurance undertakings already
registered and established in certain jurisdictions to re-domicile
to Malta. Maltese law also applies the EU Cross-Border Mergers
Maltese Legislation provides for the transfer of business of
insurance by means of portfolio transfer, both in relation to
general business of insurance and life insurance business.
A Low Cost Jurisdiction
Renowned to be a comparatively low cost jurisdiction in the EU
and as a developing Financial Services centre, Malta is
consistently topping the charts as one of the most cost-efficient
domiciles for insurers.
Availability of International Service Providers
(Re)insurance undertakings located in Malta may outsource
management by appointing a licensed insurance management company to
provide insurance management services. Malta offers an impressive
array of international insurance managers who have set up
operations in Malta, the Big Four audit firms as well as a number
of local operators.
The Protected Cell Company as an Alternative Model
Maltese legislation allows (re)insurance undertakings to be
created as Protected Cell Companies (PCCs). A PCC is a regular
trading company which can create one or more cells for the purpose
of segregating and protecting the cellular assets from each other
and from the assets of the company. This enables promoters to come
together within the PCC framework and to share overhead costs
whilst being protected from each other's liabilities.
Alternatively, a single promoter can write separate lines of
business from separate cells, thus segregating each line of
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Life insurance has become virtually ubiquitous in wealth planning. It is flexible, can be adapted to a wide range of purposes, enjoys very favourable tax treatment in most if not all jurisdictions and is virtually universally recognised.
Bermuda is the first offshore jurisdiction to be granted ‘conditional qualified jurisdiction’ status by the National Association of Insurance Commissioners (NAIC), the US standard-setting and regulatory support organisation created and governed by the chief insurance regulators from each US State, the District of Columbia and five US territories.
As reported in our e-alert on 6 January 2012, the Court of First Instance in Hong Kong has handed down an important judgment that upholds the long established commercial practice of an insurance broker acting as agent for the insured and not as agent for the insurer.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).