Farah Jaafar, CEO of the Labuan International Business and Financial Centre (Labuan IBFC), has asserted that the Centre’s “recognition in Europe is definitely growing,” following an active year for captive growth.
2020 was a busy year for Labuan captive business with 8 new captives formed, totalling 55 captives now licensed by the jurisdiction.
This was the highest number of captives formed in both Asia and MENA in 2020, and in the first half of 2021, 8 new captives have already been approved.
Labuan IBFC’s captive insurance business also continued its upward trajectory in 2020, with total gross premium increasing by 8.7% to $497.5 million, out of which 65.4%of the premiums are from international markets.
Labuan’s captive insurance business accounts for 31.2% of the total premiums underwritten in the jurisdiction.
“Over the last few years, we have had significant interest and captive establishments from European entities, some of which have a presence in Asia,” Jaafar noted. “Our sound regulatory framework, proportionality in prudential requirements and our midshore offering and reputation makes for an ideal “home” for captive insurance vehicles.”
He added that Labuan IBFC is currently considered to Asia and MENA’s fastest-growing risk and reinsurance wholesale intermediation market, with more than 220 license holders.
Labuan IBFC is also the only jurisdiction in Asia that provides for the protected cell company (PCC) structure, with more than 10 PCCs licensed to date.