About

Lombard International Life Assurance Company (Bermuda) Ltd. (LILB) specializes in variable universal life and variable annuity products issued on a private placement basis. The products are designed to meet multi-jurisdictional investment, tax, estate planning, income protection, asset protection and pre-immigration planning needs of the sophisticated high-net-worth client. LILB is a wholly owned subsidiary of Lombard International Group, Inc. The company is licensed and regulated by the Bermuda Monetary Authority.

LILB has made an election under section 953(d) of the Internal Revenue Code to be treated as a U.S. domestic insurance company for U.S. federal income tax purposes. Our policies are designed to conform with relevant U.S. tax codes for qualifying U.S. citizens and residents. Lombard International does not deal directly with clients but works with business partners that include insurance brokers, financial advisors, private banks, family offices, law firms and accounting firms. All products are issued pursuant to the laws of Bermuda. LILB maintains all original policies and application information in Bermuda.

Bermuda

Bermuda is one of the world's leading financial services centers and the country employs a legal system based on English Common Law. The country is known for its political stability, pro-active regulatory environment and its well established legal, accounting and trust services. Under Bermuda's Segregated Account Legislation, an insurance company must maintain a segregated account for each policy or premium payment. In addition, assets held within one segregated account may under no circumstances be used to cover any liabilities of the insurance company or another segregated account. All of which make Bermuda an ideal location for international high-net-worth clients wishing to purchase private placement life insurance and annuity products.

953(d) Election

Internal Revenue Code section 953(d) authorizes certain foreign insurance companies to elect to be treated and taxed the same as US-based life insurance companies. The 953(d) election only has implications as to the tax status of LILB; it does not subject LILB to the authority of any other U.S. Federal or State agencies or regulatory bodies, such as state insurance commissioners.

Some of the benefits to the client of this election include:

  • The client is not subject to the 1% U.S. Federal Excise Tax, which is otherwise due on any life insurance premiums paid to foreign insurance carriers. This savings results in more of the client's investment dollars remaining in the policy and growing tax deferred.
  • The election offers additional tax transparency with the IRS.
  • W-9 status on policy assets held with financial institutions.
  • Interest and dividend payments received by LILB or the segregated accounts are not subject to withholding tax.
  • The 953(d) status of LILB only subjects the company’s net profits, but none of the profits, gains or income achieved from assets held in the individual segregated policy accounts to U.S. taxation.
Products

Lombard International Life Assurance Company (Bermuda) Ltd. offers private placement variable life and variable annuity products that provide insurance brokers, financial advisors, private banks, family offices, law firms and accounting firms with additional solutions to help them meet the needs of their high-net-worth clients. LILB's position is that all insurance contracts should contain significant insurance risk transfer. Our policies are designed to conform with relevant U.S. tax codes for qualifying U.S. citizens, residents and Foreign persons.

We offer the following products:

Variable Universal Life
  • Individual Variable Life
  • Second-to-die Variable Life
Deferred Variable Annuity
  • Variable Annuity
All products are issued pursuant to the laws of Bermuda. LILB maintains all original policies and application information in Bermuda. Any legal proceedings with respect to LILB's insurance products will be subject to the exclusive jurisdiction of the Bermuda courts.

Reporting

Lombard International Life Assurance Company (Bermuda) Ltd. (LILB) requires that all U.S. persons purchasing a policy comply with all reporting and compliance requirements. LILB monitors all policies for compliance purposes on a consistent basis.

LILB does not provide tax advice - please consult with a competent tax advisor with respect to tax reporting obligations resulting from owning a LILB insurance or annuity contract. The following is for informational purposes only and is not intended to be comprehensive guidance.

Filing requirements for U.S. Persons would include:
  • FBAR – Report of Foreign Bank and Financial Accounts. This is to be filed with the U.S. Department of the Treasury on or before June 30 of each year for the prior year if at any time during such year the value of such financial account (which includes cash value life insurance or annuity contracts) that a U.S. Person owns, or over which a U.S. Person has certain authority exceeds specified amounts. Form TD F 90-22.1 is used for reporting.
  • FATCA – Foreign Account Tax Compliance Act provisions of the US Hiring Incentives to Restore Employment Act. This Act is aimed at addressing perceived tax abuse by U.S. persons through the use of offshore accounts. As a foreign financial institution (FFI), the new rules require LILB to provide the Internal Revenue Service (IRS) with information on certain U.S. persons and their accounts outside of the U.S.
  • LILB contracts may be reportable on Form 1040, Schedule B, Part III and Form 8938.
  • FET – Federal Excise Tax. The FET is not applicable to policies issued by LILB.
 
Team
Legal Counsel Insurance Manager Auditor
Appleby (Bermuda) Limited
Canon's Court
22 Victoria Street
PO Box HM 1179
Hamilton HM EX
Bermuda
+1 441-295-2244
Kane (Bermuda) Limited
A Kane Group Company
6th Floor Cumberland House
1 Victoria Street, Hamilton, HM 11
P.O. Box HM 3033, Hamilton HM NX
Bermuda
+1 441-248-6811
KPMG
4 Par-la-Ville Road
Hamilton HM 08, Bermuda
+1 441-295-5063
 
Contacts
Customer Service, Sales Support President, LILB
6th Floor Cumberland House
1 Victoria Street, Hamilton, HM 11
P.O. Box HM 3033, Hamilton HM NX
Bermuda
+1 441-248-6811
info@pflb.bm
Ken Kilbane
​President, Lombard International Life Assurance Company (Bermuda) Ltd.
6th Floor Cumberland House
1 Victoria Street, Hamilton, HM 11
P.O. Box HM 3033, Hamilton HM NX
Bermuda
+1 441-296-2195

See More