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PKF Malta is a licensed provider of expert services to the insurance industry, including external and internal audits, financial reporting, and compliance with IFRS 17 and Solvency II. With a dedicated team of qualified underwriters and actuaries, we offer tailored services to help insurers navigate the complex regulatory and financial landscape. Our services also extend to the incorporation and management of Captives, (Re)Insurance Companies, and PCCs, as well as full support for insurance intermediaries.

Malta boasts many advantages as a domicile for insurance companies and captives, with many dedicated, talented, and successful companies holding testament to this. PKF Malta’s associate, Risk Management Services (Malta) Ltd, is a shining example of what can be achieved and can assist clients throughout the process of registering and licensing a Captive, (Re)Insurance Company, or PCC, together with the provision of related services.

Malta can and is fully utilising its potential in the insurance industry. Changes have been made and will continue to shake the insurance industry with the new introduction of IFRS 17 and, more recently, the onset of the Insurance Distribution Directive and Regulations on Data. Solvency II was an overhaul, much debated by the insurance industry as a whole, set up to provide a level platform on the calculation of capital solvency requirements. The adoption of IFRS aims at transparency in disclosures with a clearer understanding of where profits are derived from.

These frameworks work in tandem to provide a robust structure wherein ultimately, the aim of protecting the policyholder is achieved. PKF is able to provide expert advice to help insurers face these financial reporting challenges, including IFRS 17 and Solvency II compliance, through our specialised services.

PKF Assurance (Malta) Ltd is a Maltese limited liability company that is duly licensed to act as an approved auditor under the terms of regulation 5 of the Insurance Business (Approved Auditor) Regulations 2000 made under the Insurance Business Act. Chapter 403 of the Laws of Malta, and is regulated by the same. PKF is licensed to carry out both external and internal audits to the insurance industry, both in terms of risk-bearing insurers and intermediaries.

PKF Malta also aims to promote Malta to prospective Captive Owners, Insurance Companies, or Insurance Intermediaries seeking to tap into their European risks through passporting. Malta offers a range of attractive features for businesses looking to establish themselves in the insurance sector:

Malta Features:

• EU Single Passport – avoid fronting costs*
• Can provide cover for risks across the entire EU and EEA – without the need for a fronter
• Tax imputed to shareholders on dividend distribution (attractive tax and fiscal system via rebates)
• Double Taxation Relief treaties with 100+ countries including the USA
• Only full EU Member to have PCC – Protected Cell Company legislation under the EU Solvency II Regime
• Re-Domiciliation provisions
• Very strong banking, legal, and financial services sector
• Highly qualified & experienced local workforce ensuring professional management and consultancy
• Lower costs of set-up and wages when compared to other EU counterparts

PKF Malta is an approved insurance auditor by the MFSA with a team of qualified underwriters and actuaries, providing specialised services to the insurance industry. It works closely with service providers within the local industry to cater to your needs and, as an integrated member firm of PKF Group, also collaborates with international offices to deliver specialised technical solutions to the local insurance industry.

Our Services:

• Provision of either the external statutory audit or internal audit service
• Audit of financial statements and Solvency II reporting
• IFRS 17 Thematic Reviews
• Tax and assistance with tax refunds
• Assistance in aligning captive activity to parent’s strategic risk aims
• Coordinating service providers, brokers, legal and bankers, insurance management, accountancy, company secretarial, corporate governance and compliance, actuaries, risk managers, compliance officers, company secretaries, money laundering reporting officers, claims handlers, reinsurers, IT suppliers, and other service providers as required
• Feasibility studies
• Incorporation and registration of insurance/captive/PCC companies/management/intermediaries
• Setting up the initial introductory meeting with the Regulator and follow-up meetings
• Preparation and submission of the application for authorisation by the MFSA in liaison with any required entity, and the preparation of the three-year financial projections
• Post-application support to respond to any queries from the MFSA arising from the application submission
• Due diligence on third parties pre-contract
• Back Office, Technical Accounts, Administration, and Secretarial Services

IFRS 17 Consulting and Actuarial Services:

• Reserve Recalculation and Review: Independent recalculation of IFRS 17 reserves and detailed reviews to ensure compliance and accuracy.
• IFRS 17 Thematic Reviews: Tailored assessments of IFRS 17 implementation, focusing on specific aspects such as risk adjustments, contractual service margins (CSM), and coverage unit methods.
• Gap Analysis and Implementation Assistance: Comprehensive evaluations of IFRS 17 readiness, with practical guidance for bridging identified gaps.

Solvency II Compliance and Actuarial Support:

• SCR Recalculation and Validation: Ensuring accurate Solvency Capital Requirement (SCR) calculations, including scenario testing, stress testing, and validation of internal models.
• Technical Provisions (TPs): Independent reviews and recalculations of TPs under Solvency II, including validation of methodologies, assumptions, and results.

Most captives/insurers take advantage of the EEA freedom of passporting to write insurance directly without the need for a fronter. Typically, a non-EU captive would use a licensed insurance company as the fronter to write business in the EU, with the captive reinsuring the fronter. However, this has its disadvantages, such as the lack of general guidelines in EU domiciles on the amount and type of collateral required for fronting arrangements. Many find that the cost of setting up in Malta is more competitive, while ensuring full control without the need for a fronter.

By combining our expertise in IFRS 17, Solvency II, and other areas of insurance financial management, PKF Malta is well-positioned to offer the most effective support to both new and established players in the insurance market.

We're here to help!

If you have any questions or need further assistance, feel free to reach out to us at info@pkfmalta.com or call us at +35621484373.