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A captive insurance company is essentially an in-house insurance company. A captive is created to insure the assets, liabilities and other risks of its parent company.  

Labuan captive licenses include: 

  • Pure/Single Owner

  • Group, Association and Multi-owner

  • Rent-a-Captive

  • Protected Cell Company


  1. Customise insurance cover

  2. Cover for uninsurable risks 

  3. Access to global reinsurance 

  4. Stable insurance premiums 

  5. Enhance risk management

  6. Reduce overall risk costs

  7. Involvement in claims management

  8. Enjoy insurance underwriting profits

  9. Earn investment income

  10. Cash flow benefits

  11. Tax benefits


In general, most countries have an admitted insurer ruling, meaning that insurances have to be bought from insurance companies licensed in that country. Because of this requirement, most captive requires the services of a Fronting Insurer.

In a typical arrangement, the parent company of the captive will insure with a local admitted insurer. The fronting insurer then either retains some share and reinsure the balance or reinsures everything to the captive.


In such arrangements, the captive is termed as a reinsurance captive. There may be circumstance where no fronting insurer is required and the captive can issue policies directly to the Insured. On acceptance of the risk, the captive can either retain everything or retain a portion and buy reinsurance protection for the balance.


One of LIMSL’s niche services is the management of captives. Among some of LIMSL’s Labuan captives are leading home brands in Malaysia as well as in other countries.

LIMSL offers a fully integrated service centre to assist you to set up the captive in Labuan; starting with preliminary discussions with you on the feasibility of the captive all the way to guiding you in the licence application. Once licence is granted, LIMSL will provide you with the necessary support and back office functions. LIMSL’s services are tailored to your needs.

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