From: Business Insurance
New regulatory regimes for captives in some European countries have already started to “change the landscape of European captive domiciles,” according to AM Best. France, which introduced rules to encourage captives to establish or redomicile in the country at the end of 2022, recorded the highest net captive growth in 2024, the rating agency says.
Publishing a market sector report, AM Best finds that Guernsey and Luxembourg jointly took first place, housing the largest number of captives in 2024 at 197 each. But Guernsey recorded a net decline of seven captives after 17 surrenders in the year, while Luxembourg saw net growth of just two after seven new formations and the loss of five.
The Isle of Man and Ireland retained their places as the third- and fourth-largest captive locations, at 94 and 61, respectively, but both recorded net declines in the growth of captives.
“Together, the top four domiciles, which are all mature captive domiciles, saw a net decline in captive numbers in 2024, while net increase have been seen among the smaller and newer domiciles,” AM Best says, also noting that the UK is preparing for a captive insurance regime ready for 2027.
