Saturday, April 29, 2006
Is Not Having an Offshore Insurance Company Worth the Risk?
Is Not Having an Offshore Insurance Company Worth the Risk?: "Many of America’s largest companies were already taking advantage of the strategy, as were a number of high net-worth individuals. It is a tax savings vehicle with excellent profit potential and can also serve as an asset protection and estate-planning tool. Why is so little usable information available about it?
Anyone familiar with offshore investment options is aware of offshore captive insurance but the option is quickly dismissed with the realization that one must set up a legitimate insurance company with bona fide arm’s length clients. Many investors pass it off as an option reserved for multimillion-dollar companies and very wealthy individuals.
There are well-know insurance companies offshore such as Exel Insurance, Terra Nova, Partners Reinsurance and Ace Ltd. These enterprises are successful, well-managed and have not been faced with payouts for heavy losses in several years. They had average returns of 63.9% for the 12 months ended March 31, compared with 45.5% for the Standard & Poor’s 500-stock index, according to an article in the Chicago Tribune. These companies are based in Bermuda, which imposes no income taxes. Exel, is the 14th-largest insurer in the North American property and casualty market. The company, which provides liability insurance for corporations, paid only $5 million in income taxes worldwide last year on"
Anyone familiar with offshore investment options is aware of offshore captive insurance but the option is quickly dismissed with the realization that one must set up a legitimate insurance company with bona fide arm’s length clients. Many investors pass it off as an option reserved for multimillion-dollar companies and very wealthy individuals.
There are well-know insurance companies offshore such as Exel Insurance, Terra Nova, Partners Reinsurance and Ace Ltd. These enterprises are successful, well-managed and have not been faced with payouts for heavy losses in several years. They had average returns of 63.9% for the 12 months ended March 31, compared with 45.5% for the Standard & Poor’s 500-stock index, according to an article in the Chicago Tribune. These companies are based in Bermuda, which imposes no income taxes. Exel, is the 14th-largest insurer in the North American property and casualty market. The company, which provides liability insurance for corporations, paid only $5 million in income taxes worldwide last year on"
# posted by eastern media @ 12:38 AM 
