BERMUDA vs GuernseyReinsurance and jurisdiction choice

INSURANCE INVESTMENT FUNDS TRUST & COMPANY PENSIONS INVESTMENT MANAGEMENT

BANKING

Bermuda vs guernsey62 sq km53 sq km

NoneHurricanes

GMT +0hGMT -4h

Crown dependencyBritish overseas territory

62,821 (2016)70,537 (2016)

EnglishEnglish

English common lawEnglish common law

Stable governmentStable government

No political partiesPolitical parties

2 Bermuda vs Guernsey

Bermuda vs guernsey

BERMUDA

BERMUDA

Currency

Public debt

GDP per capita

Credit rating

Unemployment rate

Gross Domestic Product (GDP)

Deficit

Labour force

Bermudian Dollar = USD1

$2.2 billion43% of GDP

$85,700 (2013)

A+ (Standard & Poor’s)A2 Stable (Moody’s)

7% (2015)

$5.2 billion (2013)

Latest – $275 million5-year mean - $254m

33,490 (2014)

Guernsey Pound = GBP1

£330 million

$52,300 (2014)

AA- (Standard & Poor’s)

1.2% (2017)

$3.5 billion (2014)

Latest – £24 million5-year mean - £21m

30,851 (2016)

GUERNSEY

GUERNSEY

public finances

ECOnomY

BERMUDA

Employment

Licensed banks

Licensed trust companies

Licensed insurers

Investment funds

Stock Exchange

3,900 people employed in international business activity including insurance (2015)

4 (Q2 2017)

28 (Q2 2017)

1,217 (2014)

489 (2015)

Bermuda Stock Exchange (BSX)

6,828 people employed in finance including 753 employed in insurance (2016)

25 (Q2 2017)

150 (Q2 2017)

835 (2016)

807 (Q1 2017)

The International Stock Exchange (TISE)

GUERNSEY

Finance industry

BERMUDA

Country Risk Tier

CTR-2 with moderate economic risk, low financial system risk, and very low political risk – A.M. Best

CTR-1 with very low economic, political and financial system risk – A.M. Best

GUERNSEY

Country risk tier

3weareguernsey.com

economy, public finances, finance industry and risk tier

BERMUDA

Corporation tax

Payroll tax

Meets international standards?

Income tax

Customs duties

Sales tax

None; 7% rate of corporate services tax applies to income derived from corporate service business

Payable by both employer and employee: employer portion at marginal rates up to 10.25%; employee portion at marginal rates up to 8.75%

OECD whitelist

None

Duty imposed on most imported goods at 25% rate

5% GST due to be implemented from April 2018

0% standard rate of corporation tax; 10% rate of corporate tax applies to income derived from domestic insurance business

None

OECD whitelist

20% on income after personal allowances (subject to caps)

None

None

GUERNSEY

taxationREGULATOR

LEGAL + TAXREGIME

Accountantsinclude:

Proximity to investment markets

Lawyers include:

Proximity to insurance markets

Licenced insurers

Employment

✔ New York

✔ New York

1,217 (2014)

3,900 people employed in international business activity including insurance (2015)

✔ London

✔ London, Munich and Zurich

835 (2016)

6,828 people employed in finance including 753 employed in insurance (2016)

BERMUDA GUERNSEY

insurance industry

4 Bermuda vs Guernsey

insurance industry and taxation

Law

Solvency

Regulator

Modern and appropriate

Meets international standards?

Modern and appropriate

Cell companies

Insurance lawAppropriate regulation

Company law

Time of incorporation

Common Law

Commercial (re)insurers’ solvency requirements equivalent to those under Solvency II.

Bermuda Monetary Authority

✔

Compliant or largely compliant in 19/49 FATF standards

✔

2000Bermuda introduces Segregated Accounts Companies (similar to the Guernsey PCC)

Insurance Act 1978 and secondary legislation made under powers created therein

✔

Companies Act 1981

Incorporation of an Exempt Company in 2-3 weeks for $305

Common Law

Both commercial and captive insurers solvency requirements based on proportional IAIS-based regulation.

Guernsey is not seeking Solvency II equivalence.

Guernsey Financial Services Commission

✔

Compliant or largely compliant in 48/49 FATF standards

✔

1997Guernsey pioneers the Protected Cell Company (PCC)2005The Incorporated Cell Company (ICC) is introduced

Insurance Business (Bailiwick of Guernsey) Law, 2002 and in regulation and rules made under powers created therein

✔

Companies (Guernsey) Law, 2008

Standard incorporation of a limited company within 24 hours for £100

BERMUDA

BERMUDA

BERMUDAGUERNSEY

GUERNSEY

GUERNSEY

regulation

solvency

legislation

5weareguernsey.com

regulation, legislation and solvency

BERMUDA GUERNSEY

Flights

Tele-communications links

Ferries

Data Protection

Direct flights to United States (US), Canada and the United Kingdom (UK)

Satellite plus cable link to US

None

Not recognised as providing adequate protection by the European Union (EU).Personal Information Protection Bill 2016 to ensure adequacy under EU General Data Protection Regulation

Direct flights to the UK

Satellite plus cable links to the UK and France

Daily to UK and France

Recognised as providing adequate protection by the EU.New primary legislation to ensure adequacy under EU General Data Protection Regulation

6 Bermuda vs Guernsey

LINKS

BERMUDA

Employing staff

Immigration and residency

Community

Schooling

Property Market

Healthcare

International business is largest employer and thus large pool of skilled local individuals

Non-Bermudians can only be employed if employer can demonstrate that no Bermudian, spouse of a Bermudian or Permanent Residency Certificate holder was suitably qualified or available to be hired

All persons other than Bermudians, persons married to Bermudians or persons holding a Permanent Residents Certificate must have a valid work permit or permission to legally remain in Bermuda

Work permits for non-Bermudians available through Bermuda Immigration and Protection Act, 1956

No citizenship or residency by investment

Large expat community

A large range of primary education and middle schools

Two high schools and six private schools

Access to higher education in USA and UK

Restricted number of properties available for purchase by non-Bermudians

Licence required for any non-Bermudian to buy property in Bermuda and a licence fee of 12.5% of value of property payable

No publicly funded healthcare system

Finance industry is largest employer and thus large pool of skilled local individuals

For relocating staff the Population Management (Guernsey) Law operates a points based system and applications process for employers

British citizens, EEA national, Swiss nationals and those with a Right of Abode in the UK are able to reside in Guernsey without a need for permits

Work permits for other nationals available through the Immigration (Bailiwick of Guernsey) Rules, 2008

Investor and Entrepreneur Visa schemes also available for HNWIs and entrepreneurs

Large expat community

A large range of primary education schools

Three high schools, one Grammar School and Sixth Form College and three independent schools achieving high GSCE and A-Level results

Access to higher education in UK

Wide range of properties available for immediate purchase on the Open Market without requiring residency qualifications

Local Market properties available to qualifying persons under Population Management (Guernsey) Law, 2016

Public/private healthcare system with some charges paid by end user and other funded by the Guernsey government

GUERNSEY

7weareguernsey.com

relocation

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Guernsey Finance, PO Box 655, St Peter Port, Guernsey, GY1 3PN

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