In today’s volatile and increasingly interconnected financial environment, African banking institutions and other large conglomerates are contending with a rising spectrum of systemic and operational risks. These span from geopolitical tensions and macroeconomic instability to heightened cyber exposure, credit risk deterioration, and compliance burdens. Against this backdrop, conventional insurance markets often fall short in delivering the depth, agility, and cost-efficiency required to adequately mitigate these multidimensional risks. As such, the strategic deployment of captive insurance structures has emerged as a highly effective alternative risk transfer mechanism—providing not only enhanced risk management but also measurable financial benefits. The implementation of captive insurance can significantly improve overall risk management strategies.
Mauritius, as a well-established International Financial Centre (IFC) with a resilient regulatory infrastructure and fiscally competitive landscape, is ideally positioned to serve as the domicile of choice for large conglomerates pursuing captive insurance solutions. The jurisdiction offers a balanced ecosystem that aligns regulatory robustness with structuring flexibility, underpinned by a progressive legal framework and a mature financial services sector.
Additionally, businesses that establish captive insurance companies can tailor their coverage to meet specific needs, enhancing their financial resilience in a challenging market.
The legislative foundation for captive insurance in Mauritius is outlined in the Captive Insurance Act 2015, further supported by subsequent amendments that have expanded the scope to include structures such as third-party and multi-owner captives. This regulatory advancement reflects a forward-leaning posture that is conducive to innovation, while oversight by the Financial Services Commission (FSC) ensures governance in accordance with risk-based solvency and international prudential standards. This duality allows financial institutions to calibrate their captive structures with precision, enabling tailored coverage across credit portfolios, operational risks, digital vulnerabilities, and regulatory exposures.
Captive Insurance – Managing risk and maximising financial performance for banks and large conglomerates
In financial terms, the value proposition of Mauritius as a captive domicile is compelling. The regime offers a 10-year income tax holiday for pure captives, zero capital gains tax, and exemptions on withholding tax for dividends, interest, and royalties. These features contribute to superior capital efficiency and facilitate greater retention of earnings within the group structure. Coupled with Mauritius’s expansive network of over 45 Double Taxation Avoidance Agreements (DTAAs), particularly within the African continent, this allows for strategic capital redeployment, improved group liquidity management, and enhanced balance sheet strength.
Moreover, by utilising a captive, African banks and other large institutions gain direct access to global reinsurance markets, thereby bypassing intermediaries and achieving more competitive pricing, higher retention limits, and broader coverage scopes. This contrasts sharply with traditional insurance arrangements, where premiums are often disproportionate to risk exposure and subject to inflexible policy conditions. The ability to negotiate reinsurance terms from a position of control is a significant advantage, particularly in a hardening insurance market.
Still, the establishment and ongoing administration of a captive insurance entity entails considerable regulatory, actuarial, and financial complexities. It requires a robust governance framework, ongoing compliance monitoring, technical underwriting knowledge, and seamless integration with the parent bank’s or conglomerate’s head office risk and finance functions. Therefore, partnering with an experienced and institutionally aligned service provider becomes critical to operational success.
Rogers Capital – Fiduciary, a division of the Rogers Capital Group, the finance arm of ER Group and a key player in the Mauritius IFC landscape, offers comprehensive fiduciary and corporate administration services tailored to the needs of institutional clients, including financial institutions establishing captives. The firm brings together deep domain expertise, multidisciplinary capabilities, and a rigorous governance ethos—making it a credible partner for banks and conglomerates seeking to structure and manage captive solutions with minimal friction and maximum compliance.
In summary, Mauritius offers a jurisdictional advantage for African banks and other large corporates seeking to optimise their risk transfer strategies through captive insurance. The convergence of a robust regulatory framework, tax-efficient structuring environment, and access to expert fiduciary service providers like Rogers Capital – Fiduciary creates a compelling case for action. For forward-looking institutions aiming to enhance capital efficiency, strengthen enterprise risk resilience, and assert greater control over insurance outcomes, a Mauritius-based captive structure is not merely a tactical option—it is a strategic imperative.
As the business landscape continues to evolve in complexity and scale, those institutions that proactively leverage captive insurance vehicles will be better positioned to navigate regulatory headwinds, absorb economic shocks, and sustain competitive advantage. Mauritius, with its institutional credibility and professional ecosystem, is well placed to be the platform from which that transformation is executed.