SOUTHAMPTON, Bermuda — Brexit is forcing captive owners to make changes as companies flee the United Kingdom, but owners see U.S. tax reform as a long-term positive for their captives.
Santiago Garcia, global insurance manager, specialty risk unit, for Caterpillar Financial Insurance Services based in Nashville, Tennessee, said most of the captive insurer’s non-U.S. liability exposures have been placed in London.
“We will see changes going forward because our fronting partner is leaving the U.K., but we’re still going to need to have a policy and a program in place in the country,” he said at the 2018 Bermuda Captive Conference in Southampton, Bermuda, on Tuesday.
General Motors Co. completed the sale of its European division Opel to the PSA Group in July, so the company’s exposure to Brexit will be “significantly reduced,” said Alan Gier, Detroit-based global director, risk and insurance for the auto manufacturer.
“We still have some exposures, very little legacy exposures, but we think can meet our requirements through our fronting arrangement with a carrier that will move to the…
