Columbian Banking Firm Forms Bermuda’s First Captive of 2026

Key Takeaways

• Rojo Re Ltd received Bermuda’s first Class 3 captive licence in 2026
• Licence enables Colombian bank to underwrite risks via Bermuda’s regime
• Captive adds Latin American presence to Bermuda’s insurance market
• Highlights Bermuda’s continued attractiveness for cross‑border captive structures

Pulse Analysis

Bermuda has long been a magnet for captive insurers because of its flexible regulatory environment, robust legal infrastructure, and favorable tax regime. The jurisdiction hosts more than 1,000 captive entities, ranging from small family-owned vehicles to large multinational platforms. By issuing a Class 3 licence—reserved for insurers with substantial capital and governance standards—Bermuda signals its commitment to high‑quality risk‑management solutions, while offering policyholders a stable, internationally recognized domicile.

Rojo Re Ltd, a Colombian banking firm expanding its financial services portfolio, seized the opportunity to establish a captive in Bermuda. The move allows the bank to internalize underwriting of credit, operational and market risks, thereby reducing reliance on external reinsurance markets. Leveraging Bermuda’s capital‑efficient framework, Rojo Re can achieve lower cost of capital, improve balance‑sheet resilience, and offer bespoke insurance products to its corporate clients across Latin America. The Class 3 licence also grants access to Bermuda’s sophisticated reinsurance market, facilitating risk diversification and potential profit‑sharing arrangements.

The approval of Rojo Re’s captive underscores a broader trend of Latin American financial institutions seeking offshore structures to optimize risk and tax outcomes. As regional economies mature, demand for tailored captive solutions is expected to rise, positioning Bermuda as a strategic gateway. Analysts anticipate that this development could spur additional licences in 2026, reinforcing Bermuda’s competitive edge against emerging captive hubs in the Caribbean and Europe. Stakeholders should monitor regulatory updates and capital‑allocation strategies as the market evolves.