DUCHY'S GENEROUS TAX-FREE RESERVES UNDER SCRUTINY.(captive insurance companies static in Luxembourg; European Commission investigating special tax regimes)

Business Insurance, April, 1999 by GODDARD, SARAH

LUXEMBOURG -- Captive numbers in Luxembourg remained static in 1998, reflecting little change across the domicile. Constant captive numbers of 220 licensed in the domicile mask a little bit of underlying activity, said Insurance Commissioner Victor Rod. ``We lost three or four and gained three or four,'' he said.

Parent company mergers removed one from the list, he said, and three closed down ``mainly because of lack of interest from the promoters.'' A total of 254 reinsurance companies operate in the Grand Duchy of Luxembourg, of which he estimates about 220 are reinsurance captives. The Commissariat aux Assurances does not distinguish captives from other types of reinsurers. Captives operating in Luxembourg are authorized only to write reinsurance. They...

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