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Bermuda may be the world’s leading jurisdiction for the registration of captive insurance companies, but even the global pacesetter loses the odd captive to another locale.
Captive Insurance Times reports that the Astana Financial Services Authority in Kazakhstan has issued a licence to the Kazakhstan Energy Reinsurance Company to continue as a captive insurer after it relocated from Bermuda, where it had been operating since 2004, to the Astana International Financial Centre.
Mukhtar Bubeyev, acting chief executive officer of AFSA, said: “The transfer of incorporation of the Kazakhstan Energy Reinsurance Company to the AIFC gives a clear message that the legal framework of the AIFC supports Kazakhstani companies willing to relocate operations and assets to Kazakhstan through the AIFC, where a regulatory regime is well placed for doing financial services business and the protection of investments.”
Kazakhstan Energy Reinsurance Company is an affiliated company of KazMunayGas, carrying on insurance business within KazMunayGas and the National Welfare Fund Samruk-Kazyna, which is its ultimate parent holding company.
Aigul Beknazarova, managing director, financial controller of KazMunayGas, said: “The AIFC opens new opportunities for large companies conducting international business. This is a good opportunity, and we are pleased to take advantage of what this jurisdiction offers.”
He added: “This is not our first transaction on this platform, but we took advantage of the opportunity to transfer company incorporation to the AIFC jurisdiction for the first time. We hope that the AIFC will continue to be a flexible and convenient platform for business.”
According to AIFC regulations, the transfer of incorporation allows KERC to continue to have all the property, rights and privileges, and be subject to all the liabilities, restrictions and debts, that it had before the continuation.
At the end of 2018, some 711 captives were registered with the Bermuda Monetary Authority, having total captive premiums of $40 billion.
Kazakhstan, in Central Asia, is the world’s ninth largest country. It is a major producer of oil, gas, and coal, as well as being the world’s largest producer and exporter of uranium ore.