BERMUDA vs Guernsey Reinsurance and jurisdiction choice
INSURANCE INVESTMENT FUNDS TRUST & COMPANY PENSIONS INVESTMENT BANKING MANAGEMENT Bermuda vs guernsey
Bermuda vs guernsey
53 sq km 62 sq km
Hurricanes None
GMT -4h GMT +0h
70,537 (2016) 62,821 (2016)
English English
British overseas territory Crown dependency
English common law English common law
Stable government Stable government
Political parties No political parties
2 Bermuda vs Guernsey economy, public finances, finance industry and risk tier
ECOnomY Finance industry
BERMUDA GUERNSEY BERMUDA GUERNSEY
Currency Bermudian Dollar = Guernsey Pound = Employment 3,900 people 6,828 people USD1 GBP1 employed in employed in international business finance including activity including 753 employed in Gross Domestic $5.2 billion (2013) $3.5 billion (2014) insurance (2015) insurance (2016) Product (GDP) Licensed 1,217 (2014) 835 (2016) GDP per capita $85,700 (2013) $52,300 (2014) insurers
Licensed 4 (Q2 2017) 25 (Q2 2017) Labour force 33,490 (2014) 30,851 (2016) banks
Unemployment 7% (2015) 1.2% (2017) Investment 489 (2015) 807 (Q1 2017) rate funds Licensed trust 28 (Q2 2017) 150 (Q2 2017) companies
Stock Bermuda Stock The International Stock public finances Exchange Exchange (BSX) Exchange (TISE)
BERMUDA GUERNSEY Country risk tier Public debt $2.2 billion £330 million 43% of GDP BERMUDA GUERNSEY Deficit Latest – $275 million Latest – £24 million Country Risk CTR-2 with moderate CTR-1 with very low 5-year mean - $254m 5-year mean - £21m Tier economic risk, low economic, political and financial system risk, financial system risk – Credit rating A+ (Standard & Poor’s) AA- (Standard & and very low political A.M. Best A2 Stable (Moody’s) Poor’s) risk – A.M. Best
weareguernsey.com 3 insurance industry and taxation
+ TAX LEGAL REGIME insurance industry REGULATOR taxation
BERMUDA GUERNSEY BERMUDA GUERNSEY
Licenced 1,217 (2014) 835 (2016) Corporation tax None; 7% rate of 0% standard rate insurers corporate services of corporation tax; tax applies to income 10% rate of corporate Employment 3,900 people 6,828 people derived from corporate tax applies to income employed in employed in finance service business derived from domestic international business including 753 employed insurance business activity including in insurance (2016) insurance (2015) Income tax None 20% on income after personal allowances Lawyers include: (subject to caps)
Payroll tax Payable by both None employer and
employee: employer
portion at marginal rates up to 10.25%; employee portion at marginal rates up to 8.75%
Sales tax 5% GST due to be None Accountants implemented from include: April 2018
Customs duties Duty imposed on most None imported goods at 25% rate Proximity to ✔ New York ✔ London, Munich insurance and Zurich Meets OECD whitelist OECD whitelist markets international standards? Proximity to ✔ New York ✔ London investment markets
4 Bermuda vs Guernsey regulation, legislation and solvency
regulation legislation
BERMUDA GUERNSEY BERMUDA GUERNSEY
Regulator Bermuda Monetary Guernsey Financial Law Common Law Common Law Authority Services Commission Insurance law Insurance Act 1978 Insurance Business Appropriate ✔ ✔ and secondary (Bailiwick of Guernsey) regulation legislation made Law, 2002 and in under powers regulation and rules Meets Compliant or largely Compliant or largely created therein made under powers international compliant in 19/49 compliant in 48/49 created therein standards? FATF standards FATF standards Modern and ✔ ✔ appropriate
Company law Companies Act 1981 Companies (Guernsey) Law, 2008 Modern and ✔ ✔ appropriate
solvency Time of Incorporation of an Standard incorporation incorporation Exempt Company in of a limited company 2-3 weeks for $305 within 24 hours for BERMUDA GUERNSEY £100 Cell companies 2000 1997 Solvency Commercial (re) Both commercial Bermuda introduces Guernsey pioneers insurers’ solvency and captive insurers Segregated Accounts the Protected Cell requirements solvency requirements Companies (similar to Company (PCC) equivalent to those based on proportional the Guernsey PCC) under Solvency II. IAIS-based regulation. 2005 The Incorporated Guernsey is not Cell Company (ICC) seeking Solvency II is introduced equivalence.
weareguernsey.com 5 LINKS
BERMUDA GUERNSEY
Flights Direct flights to United States (US), Canada and the United Direct flights to the UK Kingdom (UK)
Ferries None Daily to UK and France
Tele- Satellite plus cable link to US Satellite plus cable links to the UK and France communications links
Data Protection Not recognised as providing adequate protection by the Recognised as providing adequate protection by the EU. European Union (EU). New primary legislation to ensure adequacy under EU General Personal Information Protection Bill 2016 to ensure adequacy Data Protection Regulation under EU General Data Protection Regulation
6 Bermuda vs Guernsey relocation
BERMUDA GUERNSEY
Immigration and All persons other than Bermudians, persons married to British citizens, EEA national, Swiss nationals and those with residency Bermudians or persons holding a Permanent Residents a Right of Abode in the UK are able to reside in Guernsey Certificate must have a valid work permit or permission to without a need for permits legally remain in Bermuda Work permits for other nationals available through the Work permits for non-Bermudians available through Bermuda Immigration (Bailiwick of Guernsey) Rules, 2008 Immigration and Protection Act, 1956 Investor and Entrepreneur Visa schemes also available for No citizenship or residency by investment HNWIs and entrepreneurs
Property Market Restricted number of properties available for purchase Wide range of properties available for immediate purchase on by non-Bermudians the Open Market without requiring residency qualifications Licence required for any non-Bermudian to buy property Local Market properties available to qualifying persons under in Bermuda and a licence fee of 12.5% of value of Population Management (Guernsey) Law, 2016 property payable
Employing staff International business is largest employer and thus large pool of Finance industry is largest employer and thus large pool of skilled local individuals skilled local individuals Non-Bermudians can only be employed if employer can For relocating staff the Population Management (Guernsey) demonstrate that no Bermudian, spouse of a Bermudian or Law operates a points based system and applications process Permanent Residency Certificate holder was suitably qualified for employers or available to be hired
Schooling A large range of primary education and middle schools A large range of primary education schools Two high schools and six private schools Three high schools, one Grammar School and Sixth Form College and three independent schools achieving high GSCE Access to higher education in USA and UK and A-Level results Access to higher education in UK
Healthcare No publicly funded healthcare system Public/private healthcare system with some charges paid by end user and other funded by the Guernsey government
Community Large expat community Large expat community
weareguernsey.com 7 weareguernsey.com
+44(0) 1481 720 071 [email protected]
Guernsey Finance, PO Box 655, St Peter Port, Guernsey, GY1 3PN