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Labuan IBFC continues insurance sector growth in 2018

28th March 2019 - Author: Matt Sheehan

The Labuan International Business and Financial Centre (Labuan IBFC) posted strong growth in its insurance sector during 2018, with total gross written premiums rising 19.1% to $1.7 billion.

labuan-financial-centreThis represents a significant jump compared with the Centre’s performance in 2017, when gross written premiums increased by just 2.2%.

Labuan IBFC said foreign insurance business accounted for 64.7% of the total premiums underwritten in 2018.

Captive insurance business also continued its growth in 2018, with total gross premium up by 11% to $400.5 million, 67.4% of which was from foreign business.

Six new captives were set up in 2018, Labuan IBFC said, all of which were Asian based.

Stratumn, by SIA Partners

The Centre recorded a 12.5% in the total number of new company incorporations in 2018, mainly from the Far East region, with a majority from Japan, China and South Korea.

Increased company incorporation also boosted the growth of trust and corporate service providers, expanding the reach of Labuan IBFC across Asia.

Elsewhere, Labuan IBFC saw the establishment of many new fintech start-ups and maintained business momentum in its banking sector, with total assets increasing by 8.4% to $55 billion and total loans increasing by 19.1% to $33.2 billion.

“The overarching growth in 2018 underscores Labuan IBFC’s growing prominence as a regional financial hub, facilitating intra-Asian trade, investments and asset intermediation,” Labuan IBFC stated.

“The results show that despite challenges and changes in global operating environment, investors’ trust and confidence in Labuan IBFC remains intact,” it continued.

“Moving forward the Labuan IBFC is expected to benefit from international regulatory changes introduced to ensure substance and transparency in all cross-border transactions.”

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