The Labuan International Business and Financial Centre (Labuan IBFC) hopes to maintain the growth of its earned premiums for captive insurance business at 18.8% this year, supported by the premiums contributed by the local giant companies.
Last year Labuan IBFC CEO, Mr Danial Mah Abdullah, said that due to higher retention for all sectors, including fire, marine, engineering and motor, the financial centre’s earned premiums for captive insurance business rose 18.8% to US$252 million.
Currently, local giant companies such as Petronas, Sime Darby, AirAsia and Genting have set up their captives in Labuan, reported the Bernama News Agency citing Mr Danial.
He said that thus far, Labuan IBFC has registered 41 captives, of which 39 recorded combined gross written premiums of US$348.6 million by the end of last year.
“Of the 39 captives, 46.3% are local companies, about 10 from Japan, and several others from countries such as Singapore, Bermuda and Sri Lanka,” he said.
He revealed that the Labuan IBFC financial centre is approaching several companies, including those from Thailand, the Philippines and Australia to establish their captives in Labuan.
“The Asian market for captive is relatively unexplored and the potential for growth is immense, with the penetration level of only 2.3% out of the total number of 6,939 captives established worldwide in 2016,” he said.