Wayfoong (Asia) Limited, a HSBC subsidiary, has been granted authorization to set up a captive insurer in Hong Kong, underscoring the city's growing significance as a global risk management center. The decision is seen as a testament to Hong Kong's attractiveness and potential, with the government offering a 50% tax concession for local captives.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On May 2, 2025, the Insurance Authority ("'IA'") approved new authorization for Wayfoong (Asia) Limited, a wholly-owned subsidiary of the HSBC Group, marking the first captive insurer formed by a multinational enterprise based in Hong Kong.
The authorization, according to Mr. Clement Cheung, Chief Executive Officer of the IA, underscores Hong Kong's increasing appeal as a leading captive domicile. It highlights the city's unique advantages in facilitating multinational enterprises' global operations, thereby enhancing its international financial center status.
Mr. Christopher Hui, Secretary for Financial Services and the Treasury, expressed his support for HSBC's initiative. He highlighted Hong Kong's robust investment and trade infrastructure, emphasizing its suitability for global enterprises seeking insurance, reinsurance, and risk management services. He also noted the 50% tax concession for local captive insurers, which aims to stimulate diversified development and attract more multinational enterprises.
A captive insurer is strategically designed to manage the multifaceted risks faced by large corporations with extensive geographic reach. This structure enables optimization of resource allocation and fosters in-house capabilities.
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