Bank of Bermuda: Standing Out from the Crowd

By Bank of Bermuda

As the captive insurance industry continues to expand worldwide with the proliferation of new domiciles, competition is heating up and forcing jurisdictions to be smart in standing out from the crowd and providing the edge captives are looking for. This holds true for captive service providers as well. Captives are no longer content with a bank that simply provides the basics; they are looking for a bank that provides innovative solutions, offering a wide range of solutions ranging from basic banking to full-blown asset management capabilities based on an intimate knowledge of the captive industry.

Bank of Bermuda, member of the HSBC Group, has long held the edge in servicing the needs of captives and continues to focus on developing innovative ways to provide captives with a competitive edge to get ahead. Bank of Bermuda has cash management relationships with approximately a third of all licensed captives worldwide. By combining local knowledge and leading market expertise in the captive sector with the added strength of being part of a global banking group, Bank of Bermuda delivers the best one-stop cash management and investment solutions to captive managers and their ultimate client. It is only by recognising the unique situation of captives, their management companies and other financial intermediaries, that Bank of Bermuda is able to develop products and services based on the true needs of the marketplace. Roland Andy Burrows, head of Commercial/Corporate Banking at Bank of Bermuda, explains, "It is important for us to really understand what the captive is all about and the factors that will lead to its success, so we can provide relevant and appropriate services and products. This attention to detail and intimate industry knowledge is what sets Bank of Bermuda apart from other competitors."

In fact, Bank of Bermuda recognises that captives and their management companies require a full range of products and services to meet their specific needs. These range from multiple currency payment and cash management products and services — which enable them to transfer and receive funds from around the world while optimising the return on their operating funds — to custody services for the safekeeping of their investment portfolios. Each type of captive will typically require an entirely different approach to banking procedures. Burrows explains, "As a captive service provider, it's important for us to keep abreast of changes in the industry, current audit hot topics and the regulatory framework in which the captive operates. As the captive grows and matures, its regulatory constraints will also change. So it's important for us to maintain our good relationship with the regulatory authority whilst helping our captive clients remain in compliance."

Bermuda is noted for its highly sophisticated and high-calibre insurance infrastructure and the close collaboration between the captive management companies, law firms, accountancy firms, regulators and financial services providers in servicing captives. The corporate banking team in Bermuda is also focusing on developing a more "joined-up" approach when servicing those captive insurance clients and industry service providers who operate across multiple jurisdictions. In fact, this joined-up approach benefits captive insurance and management companies in more ways than one. As part of the HSBC group, Bank of Bermuda can offer clients a level of onshore and offshore account capabilities that simply wasn't previously possible. Having focused on straight-through processing and cash management in the past, now as part of a much larger group, Bank of Bermuda is able to provide even greater credit facilities and asset management capabilities to clients by drawing on the expertise of capital market specialists in New York, Hong Kong and London.

As to the future, Bank of Bermuda will continue to develop a more specialised focus on captives and provide innovative financial products and services tailored to meeting their needs. Burrows says, "We have grown with the insurance industry in Bermuda and have focused our energies in meeting the needs of our captive clients. Our success in the future will be based on our ability to not only adapt and innovate to changes in the market, but to be a strategic partner in the long-term growth of the industry." Any questions or referrals may be directed to Bank of Bermuda Corporate Banking at 299-6223. (www.bankofbermuda.com)

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