Financial Services and the Treasury Bureau welcomes authorization of two new captive insurers taking Hong Kong total to nine

Hong Kong's Financial Services and the Treasury Bureau welcomed the Insurance Authority's authorization of two new captive insurers established by The Hongkong and Shanghai Hotels, Limited and SF Holding Co Ltd, bringing the total number of captives in Hong Kong to nine. The announcement points to continued growth in the local captive insurance market, with two new captives authorized in 2025 and three authorized in the first half of 2026. Captive insurers allow large corporations to manage group risks through dedicated insurance subsidiaries. The bureau linked the recent pipeline to Hong Kong's regulatory and tax framework for captive business. Measures highlighted include a 50 per cent reduction in the profits tax rate for captive insurance business, simplified capital requirements, exemption from appointing a certifying actuary and exemption from the requirement to maintain assets in Hong Kong. The government also pointed to Hong Kong's insurance, legal, actuarial and risk management capabilities as supporting captives that manage risks across corporate groups globally. As a next step, the Government and the Insurance Authority will continue outreach to Hong Kong, Mainland and international enterprises that could establish captive insurers, with the aim of expanding the local captive insurance ecosystem.