CAPTIVES 50 non-life captives
CAPTIVE PREMIUM circa SEK1,087m (€112m)
LEGISLATION Insurance Business Law 1982; Regulation of Insurance Business 1982:790; Law of Annual Statement for Insurance Companies 1995:560; Insurance Contract Law 2005:104
CAPTIVE TAX RATE flat rate tax system: 26.3%. Tax deferral due to equalisation reserves possible
FEES application fee SEK110,000; registration fee SEK2,000; and annual fee between 0.01% and 0.1% on layered total assets. Minimum fee is SEK20,000
REGULATOR Swedish Financial Supervisory Authority (Finansinspektionen)
As a member of the EU, Sweden offers European passporting rights to captives domiciled there and it has close ties with its Scandinavian neighbours. Market insiders say Sweden used to be seen as a closed market dominated by a small number of domestic companies, but since the early 1990s, it has gradually opened its doors.
One captive manager says: “Sweden is a well-established domicile. The long-term experience of the authorities and service providers of direct and reinsurance captive business is a real benefit to captive owners.” She adds: “Swedish insurance law allows a company to obtain one licence to write both direct insurance and reinsurance” – something you do not get in many of the competing domiciles and which is seen as a strong competitive advantage.
As with any EU member, the Swedish authorities and whole captive market is watching and waiting to see the full effects of Solvency II, with six captives taking part in the QIS4 process.
