Goldman Sachs Joins Bermuda-Bound US Insurers

by Mike Godfrey, Tax-News.com, Washington

28 November 2001

In a move which will anger those insurers anchored to US shores, Goldman Sachs recently revealed that along with US insurance providers American International Group and Chubb Corp., it has jumped aboard the Bermuda-bound bandwagon.

When it is launched on December 3, the AIG, Goldman and Chubb joint venture will comprise Allied World Assurance Holdings and its wholly owned subsidiary the Allied World Assurance Company, and will underwrite commercial property worldwide, as well as providing casualty insurance and reinsurance.

In addition to taking advantage of premiums which are soaring in the wake of the September 11 terrorist attacks, AWAC will also enjoy lower taxes on a significant portion of its earnings as a result of the decision to locate in Bermuda, and can look forward to a regulatory environment which offers more flexibility and privacy than is common in the US.

However, ironically enough, Chubb Corp. was one of the US based insurance companies which, prior to September 11, was involved in lobbying congress to prevent fellow US insurance providers from fleeing to low tax jurisdictions.

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