Cayman by the numbers

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Insurers are set to issue an increased amount of catastrophe bonds in 2010

As an alternative to traditional catastrophe reinsurance cat bonds benefit from improved issuance conditions and strong demand by investors, according to research by Guy Carpenter Securities.

During the first half of 2010, 10 transactions totalling $2.4bn were completed. GC Securities estimates total issuance should reach $4bn-6bn for the full year 2010, more than in 2008 and 2009 following the financial crisis, but still significantly less than during the record issuance of $7bn in 2007.

The Cayman Islands is the leading jurisdiction for cat bond listings with 74 series of catastrophe bonds listed with a value of EUR7.7bn listed on the Cayman Islands Stock Exchange. Cayman is followed by Bermuda, a distant second, having listed ten bonds with a value of $1.1 on the Bermuda Stock Exchange.

Value of cat bond lisings in $6Bn


Series of cat bonds


Source: Cayman Islands Stock Exchange, Bermuda Stock Exchange

The Cayman Islands has exchanged information on savings income of EU residents with accounts in the Cayman Islands with EU member states since 1 July 2005

Although not a member state of the EU, Cayman has entered into bilateral agreements with each member state to report savings income under the EU Savings Tax Directive.

According to the agreements the Tax Information Authority of the Cayman Islands provides competent authority in member states by June each year with information on the identity of the beneficial owners, name and address of the paying agents, account numbers of the beneficial owners and the total amount of interest or income as well as the total amount of the proceeds from sale, redemption or refund of fund investments. The regulation covers UCITS-equivalent funds only, licensed under section 5 of the Mutual Funds Law, and does not affect hedge funds.

Since 2006 the number of individual reports has steadily increased from 2,868 in 2006 to 7,397 in 2009. The actual aggregate amount of reported income, however, has been in decline since 2007 and reached its lowest level so far in 2009 with $12.25 million.

CI Tax Information Authority
Reporting of savings income to EU members


Source: Cayman Islands Tax Information Authority