Captive Formation Initial costs Annual costs
  1. Do you need a Captive? The first thing which every potential Captive owner should consider is the need for a feasibility study. The principals should carry out sufficient research by reviewing the loss experience of at least the last five years, current market premium rates and concluding from this that a Captive is required or preferred.
  2. Do you need insurance partners? Finding suitable companies to insure and reinsure the program is often the most difficult part of implementing the initial plan, and Britannia’s staff can assist in taking care of this element .
  3. How do you form a Captive? We are happy to assist you with the formation and management of the Captive. Click here to review a copy of our standard management agreement which details the services which we can provide. 
  4. What are the initial costs of formation? Initial costs of incorporation would depend on the time spent in setting up the company, including visits to Grand Cayman by professional advisors from the parent jurisdiction. However, our experience has been that these are often absorbed by the parent and only expenses incurred in the Cayman Islands are charged to the Captive. These include legal and filing fees ($5,000), government fees for the incorporation ($1,000) and the licence ($6,100) together with the travel costs for the first Shareholder and Board Meetings.
  5. What are the typical annual costs for a Captive? Annual operating costs also depend on the volume and complexity of the risk(s) involved. However, some actual costs for a typical single-parent Captive in its first year, are as follows: -
    Management US$25,000
    Statutory Fees 7,000
    Legal 5,000
    Bank Charges 2,000
    Audit Fees 8,000
    Total US$47,000