Nevis, a smidgen of land anchored in the eastern Caribbean two miles from St. Kitts, is favored by Mailho as a domicile for PORCs. Christopher Columbus discovered it on his second voyage, in 1493. However, most Nevisians probably have no idea they share their island home with the companies. Most reinsurance companies domiciled on Nevis have been registered by Mailho. His is the only company that has carte blanche to register reinsurance companies with the island's offshore registry, said Leurie Lewrence, permanent secretary in the Nevis Ministry of Finance.
Costs change as countries restructure regulations.
Bermuda, which developed an extensive reinsurance industry, restructured its regulations to attract captives. Not all direct writers favor offshore PORCs. Lloyd Gearhart, president of The Western Diversified Insurance Group, Deerfield, Ill., does not believe there are tax advantages in offshore domiciles for PORCs, only lower capital and surplus requirements. Offshore doesn't appeal to you if you are a wise fronter because you want everybody to obey regulations, and with the regulations comes tax advantage and recognition as a life insurance company. Notwithstanding the offshore or domestic debate, the demand by car dealers for a share of the underwriting profits from these insurance products is expected to continue.