The Financial Services and the Treasury Bureau (FSTB) today (July 8) welcomed the authorisation by the Insurance Authority (IA) of two new captive insurers established by The Hongkong and Shanghai Hotels, Limited and SF Holding Co Ltd, respectively, bringing the total number of captives in Hong Kong to nine. 

     Hong Kong's captive insurance market has remained vibrant over the past two years. Two new captive insurers were authorised last year, and including the abovementioned companies, three in total have already been authorised by the IA in the first half of 2026 alone. Large corporations can manage their risks more flexibly and cost-effectively through these dedicated insurance subsidiaries. The recent strong pipeline reflects enterprises' growing preference for Hong Kong's regulatory environment and strategic location.

     The Secretary for Financial Services and the Treasury, Mr Christopher Hui, said, "The decisions by The Hongkong and Shanghai Hotels, Limited and SF Holding Co Ltd to establish their captive insurers in Hong Kong once again demonstrate the strong confidence of various local and overseas enterprises in Hong Kong's robust regulatory regime and favourable business environment. The gradual expansion of the captive insurance market in Hong Kong will further strengthen the city's position as a leading insurance and risk management hub in Asia, enabling enterprises to manage their risks more effectively while supporting the sustainable growth of the economy."

     He stated that to continue attracting multinational insurance groups and captive insurance institutions to establish their presence in Hong Kong and consolidate Hong Kong's position as an international risk management centre, the Government and the IA have long been making dedicated efforts to provide comprehensive insurance solutions for large international corporations to enhance their global risk management strategies. 

     In recent years, the Government has proactively introduced a series of incentives, including the reduction of the profits tax rate by 50 per cent for captive insurance business, making Hong Kong more competitive than other Asian markets in terms of tax concessions. The IA has also provided captive insurers with various regulatory facilitation measures, including simplified capital requirements, exemption from the appointment of a certifying actuary, and exemption from the requirement to maintain assets in Hong Kong. 

     Mr Hui added, "These initiatives uphold international regulatory standards while creating highly favourable conditions for captive insurers. Hong Kong has a pool of professionals in areas such as insurance, law, actuarial science and risk management alongside a mature financial ecosystem. All these enable Hong Kong-based captive insurers to effectively manage their groups' risks worldwide. The Government and the IA will continue to reach out to Hong Kong, Mainland and international enterprises with the potential to establish captive insurers, with a view to further expanding the local captive ecosystem."

Ends/Wednesday, July 8, 2026
Issued at HKT 11:00

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