Overview
Puerto Rico’s captive insurance law became effective in March 2005. It’s legislation is similar in structure to Bermuda with separate classes of insurer and the use of premium to surplus ratios.
Minimum Capital and Surplus
Puerto Rico recognizes two classes of captive insurer.
- Class 1: Single parent captives
- Class 2: Association captives
| Class 1 | Class 2 | |
| Minimum | $500,000 | $750,000 |
| Premium to Surplus Affiliated Risks Non-Affiliated Risks |
5 to 1 n/a |
5 to 1 3 to 1 |
Key Features of Legislation
Puerto Rico combines elements of an offshore and an onshore domicile. It is a US territory and falls under the jurisdiction of the United States regarding trade, commerce, laws and currency. Yet it retains its own taxation system. International companies, including captives, are exempt from Puerto Rico taxation.
Specialty
Puerto Rico is looking to establish itself as an international insurance domicile, taking advantage of it position as a US territory. Its geographical location and local language also make it attractive to Latin American captive owners.
SRS Presence
SRS is has been managing captives in Puerto Rico since 2009. We co-ordinate our management activities in the island from our offshore offices in Bermuda and Cayman.