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
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