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  • CI-2.5 CI-2.5 General Requirements

    • CI-2.5.1

      Captive insurers are expected to maintain books and records sufficient to produce financial statements and show a record of the business undertaken. Where this function is carried out by an insurance manager, the captive insurer should ensure that the CBB has access to these records at any time and these should be sufficient to allow an audit of the insurer's business or an on-site examination of the captive insurer by the CBB.

      Rulebook Reference GR-1.1
      Amended: January 2007

    • CI-2.5.2

      Where the clients of captive insurance firms are limited to related companies, captive insurers are exempted from the due diligence requirement for client records.

      Rulebook Reference GR-1.2.4
      Amended: January 2007
      Amended: October 2007

    • CI-2.5.3

      As the business of captive insurers is limited to related parties, captive insurers do not require prior approval from the CBB for their corporate name and any trade names.

      Rulebook Reference GR-2.1
      Amended: January 2007

    • CI-2.5.4

      Captive insurers do not require CBB pre-approval for the distribution of dividends to shareholders.

      Rulebook Reference GR-3.1
      Amended: January 2007

    • CI-2.5.5

      Where a captive insurer transfers its portfolio to a third party, prior written approval from the CBB is required. Where all the policyholders affected by the transfer have given their consent in advance, then the disclosure requirements in Paragraph GR-4.2.1 do not apply. The CBB may waive some or all of the requirements in Section GR-4.2 where, in its opinion, they are not necessary in order to protect the interests of policyholders.

      Rulebook Reference GR-4.1
      GR-4.2
      Amended: January 2007

    • CI-2.5.6

      Where the transferor is a Category C1 captive captive insurance firm, it is not subject to the publication requirements set out in Section GR-4.4.

      Rulebook Reference GR-4.4
      Amended: January 2007

    • CI-2.5.7

      The management company of a captive insurance firm is not automatically a controller of the captive insurer.

      Rulebook Reference GR-5.2.4
      Amended: January 2007

    • CI-2.5.8

      All requirements dealing with close links apply in full to captive insurance firms.

      Rulebook Reference GR-6

    • CI-2.5.9

      Insurance firms are required to maintain statutory deposits as per Article 181 of the CBB Law. For captive insurers, the statutory deposit referred to in Article 181 is to be zero (nil).

      Rulebook Reference GR-7.1.2
      Amended: January 2007
      Amended: October 2007

    • CI-2.5.10

      In accordance with the Bahrain Commercial Companies Law, captive insurance firms are required to set aside a proportion of their annual profits, being no less than 10 per cent as a compulsory reserve, until the total of such compulsory reserve equals 50 per cent of the paid-up capital.

      Rulebook Reference GR-7.2
      Amended: January 2007

    • CI-2.5.11

      Captive insurance firms may, at the CBB's discretion, be exempted from the disclosure requirements that apply when an insurer suspends its business. However all other provisions of Chapter GR-8 apply.

      Rulebook Reference GR-8
      Amended: January 2007