Belgium as Captive Domicile

Belgium as Captive Domicile Belgium as Captive Domicile

Ownerships forms

Free

The Captive can be owned by a single parent (and its affiliates), by an association, but also by a service provider such as a broker or an agent.

Corporate form

Insurance Mutual

Corporate taxes

Insurance Mutuals are not subject to corporate taxes. If their investments are lodged in Mutual funds there is no tax on their investment income (otherwise 15%).

Minimum Capital

If the Mutual acts only as a reinsurer no minimum is legally required

If the Mutual writes direct business: 1,500,000 EURO and 2,000,000 EURO if liability cover is given.

Ratios

Ratio Capital and Surplus to Premium Written: 18%

Ratio Capital and Surplus to 3 year Claims average: 26%

No such ratios if the Captive serves only as reinsurer.

Representation of the capital

No requirements

Premium taxes

No Belgian taxes if risk not in Belgium

Investment requirements

If the Mutual acts only as a reinsurer: no specific requirement

If the Mutual writes direct business, the law says: " assets covering technical provisions must be diversified and spread in such a way as to ensure that there is no excessive reliance on any particular category of asset, investment market or investment."

Local fees

No specific Government fees for captives

Mandatory membership

None required

Time required to process application:

For a direct writing Captive: 4 to 5 months.

For a reinsurance Captive there is no application as such. The Mutual will get its legal status as soon as the bylaws are published in the official gazette.

J. Haenecour &Co is an underwriting agent with a long experience as legal representative and underwriting agent for insurance companies. Now part of the Royal and Sunalliace Group.

11 July, 2001

Ownerships forms	Free The Captive can be owned by a single parent (and its affiliates), by an association, but also by a service provider such as a broker or an agent.
Corporate form	Insurance Mutual
Corporate taxes	Insurance Mutuals are not subject to corporate taxes. If their investments are lodged in Mutual funds there is no tax on their investment income (otherwise 15%).
Minimum Capital	If the Mutual acts only as a reinsurer no minimum is legally required If the Mutual writes direct business: 1,500,000 EURO and 2,000,000 EURO if liability cover is given.
Ratios	Ratio Capital and Surplus to Premium Written: 18% Ratio Capital and Surplus to 3 year Claims average: 26% No such ratios if the Captive serves only as reinsurer.
Representation of the capital	No requirements
Premium taxes	No Belgian taxes if risk not in Belgium
Investment requirements	If the Mutual acts only as a reinsurer: no specific requirement If the Mutual writes direct business, the law says: " assets covering technical provisions must be diversified and spread in such a way as to ensure that there is no excessive reliance on any particular category of asset, investment market or investment."
Local fees	No specific Government fees for captives
Mandatory membership	None required
Time required to process application:	For a direct writing Captive: 4 to 5 months. For a reinsurance Captive there is no application as such. The Mutual will get its legal status as soon as the bylaws are published in the official gazette.