place to do
There are some good reasons
that the Cayman Islands has
developed into a world leader
in captives. Charting 35 years
in the business in Cayman,
George Rusu and Nick Hentges
of Captive Resources explain
what they feel makes the jurisdiction
special—and so successful.
“Even in 1982, the Cayman Islands projected that same
attitude of being open for business and willing to work
with business in terms of what it needs. Its regulatory
regime has always been of the highest quality but it has
also been nimble and open-minded. The same is true today and that is
why we have stayed loyal to the domicile for all this time.”
That is how George Rusu, the chairman, CEO and co-founder of Captive
Resources, the group captive specialist that consults to some 34 group
captives domiciled in Cayman—comprising nearly 18 percent of all captive
premium in the Cayman Islands—describes his experience of Cayman in
his early days, and how it has maintained that consistency since.
Rusu explains that when the company first moved into group captives,
he needed to make a decision in terms of where to base operations.
His options were the Cayman Islands, Bermuda or Vermont. He opted
for offshore because of concerns over potential double taxation for a
captive located onshore in the US. “Cayman just seemed helpful and
understanding of what we were trying to do,” he says.
Captive Resources’ first group captive client was incorporated in
Cayman two years later in 1984. Back then, Rusu says, the country’s
42 cayman captive 2018
focus was very clear on the three things that would drive the economy:
tourism, banking and insurance. That focus has changed little in 35
years despite many wider changes in the global nature of all three and
many regulatory changes in all areas of financial services.
Captive Resources was one of the first companies to launch a group
captive on the islands. Back then, he recalls, the infrastructure of
Cayman was very different. “There was only one set of traffic lights on
the island and everyone stayed in the Holiday Inn. Things have changed
a lot in the 35 years since then.”
The process of change has been gradual and consistent, Rusu
says. There has been a graduated transition from a small professional
services community to one that is world-class and boasts strength in
depth in certain specialities, including captive insurance.
Captive Resources, which also owns insurance manager Kensington
Management Group, one of the biggest such firms in Cayman, has
grown in a similar fashion. In 1985, its first group captive client boasted
gross written premiums of $1.5 million. Now, all the company’s group