Archive for July, 2013

Report on Insurance Industry in Cayman published by Research and Markets

Tuesday, July 16th, 2013

Research and Markets, the world’s leading source for international market research reports and market data, has announced the addition of the report titled “The Insurance Industry in the Cayman Islands, Key Trends and Opportunities to 2017” to their offering.

As the Cayman Islands is one of the most renowned offshore financial centres in the world, its favorable conditions and transparent regulations work with excellent infrastructural facilities to attract insurance companies from around the world. So, the insurance industry is an integral part of the jurisdiction’s financial sector, which accounted for 30% of GDP in 2011.

According to the report, the Cayman Islands has emerged as a hub for captive insurance and offshore health insurance business. Despite global market conditions, the low interest rate environment and growing competition, the insurance industry’s gross written premium expanded at a CAGR of 5.1% during the review period (2008-2012).

Key Highlights of the report are as follows:

– the insurance industry is well diversified with 768 insurance companies operating at the end of 2012;

– over the forecast period (2012-2017), the recovery in the economy, the evolving regulatory environment, the availability of an experienced workforce combined with the low-cost advantage for running a business will drive the growth of the insurance industry;

the Cayman Islands Monetary Authority (CIMA) revised the insurance law in 2010 ;

– the Cayman Islands Monetary Authority introduced a new regulation by amending the insurance law in 2013 to permit segregated portfolio insurers (SPC) to form one or more cell companies called portfolio insurance companies (PIC), which is expected to attract further investment in the insurance industry.

ITA acquires Standard Chartered Trust (Cayman) Ltd

Friday, July 12th, 2013

On June 26, 2013, ITA Cayman Holdings Ltd. (“ITA”) agreed to acquire Standard Chartered Trust (Cayman) Limited (“SCTC”), along with their clients from Latin America.

The ITA Group through its fiduciary arm of ITA Global Trust Company Ltd. provides trustee and corporate management and administration services to high net worth clients, private trust companies, investment funds and privately held companies. The ITA Group business is largely focused on Latin America and this acquisition further builds the business presence in that region.

The above-mentioned acquisition is subject to regulatory approval. In the meantime both ITA and SCTC will carry on business as usual, whilst the non Latin America clients of SCTC are transferred to their fiduciary entities in Singapore or Guernsey.

William Zelaya, a Director of ITA commented: “With the growth of Investors Trust Assurance SPC in Latin America, this acquisition also develops our fiduciary foothold within the region. We are excited by the continued growth of our regulated entities in the Cayman Islands, which we consider to be the most sophisticated offshore jurisdiction in the Americas and ideally located for our Latin American clients.”

ITA Global Trust Company Ltd. is licensed by the Cayman Islands Monetary Authority (CIMA) to carry on Trust business. Based in the Cayman Islands, ITA Global Trust provides structured solutions to a global diversification of clients including Latin America.

Investors Trust Assurance SPC is an A.M. Best “B++” rated leader in the offshore insurance business offering comprehensive unit-linked insurance plans to investors around the world. ITA is a registered insurance company holding a Class B Insurer License from the Cayman Islands Monetary Authority (CIMA).

Cayman extends Import Duty Concessions

Friday, July 5th, 2013

With a view to stimulate economic activity, the government of the Cayman Islands has extended several import duty concessions for a further 6 months to December 31, 2013.

The extended concessions include as follows:

– the import duty concessionary rate of 12.5 cents per gallon for the importation of motor gasoline to Cayman Brac;
– the 100% import duty waiver on building materials imported to Cayman Brac and Little Cayman; – the flat 15% import duty rate on building materials imported to Grand Cayman.

When announcing the news, the Minister for Finance & Economic Development, Marco Archer said that the extension of these concessions is consistent with the ongoing efforts of the government to stimulate growth in the economy. He also encouraged all developers and other stakeholders to accelerate their construction activity during this further concessionary period.

The normal rate of import duty on motor gasoline is 75 cents per gallon while the normal import duty rate on building material ranges from 17% to 22%.