ABIR Applauds Bermuda’s Removal From EU List
Bermuda’s leading international insurers and reinsurers, through the Association of Bermuda Insurers and Reinsurers [ABIR], applaud the Bermuda government’s successful efforts in achieving removal of Bermuda from the EU List of Non-Cooperative Jurisdictions, fully demonstrating the island’s commitment to facilitate tax transparency and compliance with global standards and maintain the jurisdiction’s top-class reputation.
The EU Finance Ministers, at their May 17, 2019 meeting in Brussels unanimously decided to remove Bermuda from Annex I of the EU list of non-cooperative jurisdictions in tax matters.
Albert A. Benchimol, President and CEO of AXIS Capital and current Chair of ABIR said, “On behalf of the entire business community, we express our appreciation to Premier Burt, Finance Minister Dickinson and Bermuda Monetary Authority Chair Jeremy Cox for immediately and effectively marshalling resources to demonstrate Bermuda’s long-standing tradition and commitment to meet and exceed international standards. Thank you as well to the European Union Economic and Financial Affairs Council for their continued engagement with Bermuda.”
Bermuda Finance Minister, The Honorable Curtis L. Dickinson and Albert A. Benchimol, President and CEO of AXIS Capital and Current Chair of AIBR
Bermuda’s Economic Substance Act of 2018, a state-of-the-art legislative package, further aligns Bermuda’s statutory and regulatory framework with both Bermuda’s prevailing, world-class business practices, and with emerging global standards. “As the global center of risk transfer, ABIR believes Bermuda’s international business sector meets or exceeds worldwide requirements. We applaud the government’s legislative reform package which further enhances that framework, and its commitment to ensuring clients and markets worldwide continue to benefit from Bermuda’s critical financial capacity and leading risk management expertise,” continued Benchimol.
ABIR members are proud of their investment — economic substance — in Bermuda’s economy. Data reported for calendar year 2017 from ABIR members showed ABIR’s aggregate direct economic impact to the Bermuda economy was $842.6 million, including travel, business, charity giving, construction expenses and compensation paid to Bermuda-based employees. Similar economic contributions from companies in ‘relevant activities’ specified in the ESA has potential to greatly enhance Bermuda’s economy.
Notably, Bermuda ABIR [re]insurers operate in 20 EU countries, with a total of 15,865 employees in the region. The top five jurisdictions with the most employees included the UK, with 9,762; France, with 1,148; Ireland, with 1,123; Germany, with 814; and Poland, with 453. ABIR members also had employees in Switzerland numbering 1,011.
“The European Union is a very important market for Bermuda [re]insurers, and our members continue to take on increasing amounts of risk in EU member states,” said John Huff, president & chief executive officer of ABIR. “The Bermuda market has paid $72.8 billion to European Union policyholders and cedents during the past 20 years. Our member companies remain strongly committed to the European market, European ceding companies, and European policyholders.”
Bermuda is a world-respected platform for global business that welcomes top-quality corporate brands. The Bermuda government and ABIR member companies are committed to tax transparency, compliance and the implementation of Economic Substance Act requirements.
“ABIR looks forward to continuing to work with the Bermuda Monetary Authority and the Bermuda government on the Economic Substance Act regulatory guidance to ensure efficient and fair implementation of the standards and to avoid any duplicative regulation while supporting the Bermuda economy”, said Huff. “ABIR’s members are good corporate citizens in Bermuda and in the worldwide markets they serve and are prepared to continue to address the world’s critical risk needs.”
