A report on the ways in which Royal Bank of Canada helps insurance clients and others in the Cayman Islands.

The Cayman Islands are home to the world's fifth-largest financial services sector. Only the mainland global centres of New York, London, Tokyo and Hong Kong outpace the Cayman Islands' financial industry.

There are now about 600 banks established in the Caymans, including 44 of the world's top 50, with assets on deposit exceeding $500bn. The Islands are also home to more than 570 captive insurance companies, as well as more than 3,500 registered, administered and licensed mutual funds.

Royal Bank of Canada has been a prominent member of this dynamic offshore financial community since 1964. Royal Bank of Canada Trust Company (Cayman) Ltd, a wholly-owned subsidiary, was established in 1972 with a Cayman Islands class `A' bank and trust license as well as an unrestricted fund administrator's license.

Corporate services
For companies conducting or contemplating international business, RBC (Cayman) offers a wide range of corporate and institutional financial services, including: general banking; wealth management; trust services; custody facilities; investment management; employee benefit plans; and international corporate structures.

In short, whatever a company may require to meet the challenges of the growing international marketplace, RBC (Cayman) can help. With offices in 24 key financial centres around the world, whether a company's needs are onshore, international, global or local, RBC (Cayman) can meet them.

Customers enjoy an uncommon level of customised service. RBC (Cayman) never offers `off the shelf' solutions. Instead, the bank tailors its proposals to meet each client company's unique situation and the international financial challenges it faces.

By thoroughly understanding a customer's business, RBC (Cayman) assembles the right package of corporate services uniquely for each client. From the very start, each customer has a principal relationship manager who takes responsibility for all aspects of a customer's affairs. The relationship manager heads up a team of professionals, each a specialist with clearly defined responsibilities.

RBC (Cayman) offers its customers bottom line benefits because they are able to focus on what they do best. The bank gives customers the freedom to focus on their core business.

A proven five-step process RBC (Cayman) starts with a comprehensive needs analysis that results in a service proposal.

Next, the bank formulates a joint business strategy and development plan with agreed benchmarks.

The customer's principal relationship manager then co-ordinates the delivery of necessary technical support and transactional processing.

In partnership with the customer and its advisors, RBC (Cayman) conducts regular reviews of all aspects of the customer's relationship and service management.

As a customer's needs evolve, so does the bank's advice and expertise. The membership and knowledge of RBC (Cayman)'s teams are constantly being refined and enhanced. With the resources of the bank's parent group to call on, customers can be confident that the bank's advice is always state-of-the-art and always up-to-date with changing legislative, regulatory and trading practices in all jurisdictions.

Meeting international financial requirements
RBC (Cayman) provides customers with international financial services that support their trading capabilities and operational presence wherever they may be around the world. The bank supplies safe and secure financial services for customers' employees' needs.

RBC (Cayman) can provide highly qualified, experienced professionals to act as corporate trustees or provide custody to safeguard and manage customers' international corporate assets.

The bank's fiscal specialists can create tax efficient structures that support customers' international trade. It can create a globally diversified investment portfolio, tailored and managed to support an organisation's overall investment strategy.

Financial institutions
Financial institutions comprise a large number of RBC (Cayman)'s clients because the bank provides complete administration and record-keeping services. This improves customers' bottom lines, because they are able to devote more resources to their core businesses.

RBC (Cayman) has developed a particular strength in the captive insurance sector, meeting the needs of many of Cayman's more than 570 captives.

Service examples
RBC (Cayman) meets a broad variety of client needs. Here are three examples of the kind of services the bank can supply.

  • Investment management and financial services
    A North American-based multinational manufacturer had operations in the US, Canada, Europe and Latin America. To help manage some of its insurance risk and retain some of the associated underwriting profits, the company set up an international captive insurance company in the Cayman islands.

    The company needed help in managing the captive's assets and its growing premium income, with its corporate banking needs and with credit references for third-party insurers.

    Working with the company and the captive, Royal Bank of Canada's Global Private Banking designed an investment management programme that suited the captive's assets and risk profile. RBC supplied the captive with Letters of Credit, so that it could establish relations with outside insurers. And it set up a corporate chequing account for the captive at RBC (Cayman), affording the company compete operating flexibility.

  • Implementation of an employee benefits plan
    When a large international telecommunications firm tried taking its successful share purchase plan from North America to its international workforce, it found that such plans were unknown in many parts of the world.

    Global Private Banking first developed a sophisticated records management system to ensure registration of each transaction. It then used its knowledge of local markets to introduce the plans and set up communications programmes using multi-lingual operators. Employees were able to get answers to their questions and track the status of their accounts. The plan is now working smoothly and effectively.

    Arbitrator and trustee for an international partnership
    When a North American mining and exploration company partnered with a group of local investors in a developing country, it ran into serious roadblocks. Differences in cultural and business backgrounds made for a climate of distrust on both sides. They needed a third party - independent, international and with an impeccable reputation.

    Both agreed that Global Private Banking would act as final arbitrator, ensuring that both parties lived up to the terms of their agreement. Global Private Banking also set up a corporate trusteeship, to hold and control the release of the partnership's shared funds. Today the project is moving along well and the partnership is growing stronger.

    Global private banking
    With more than C$1,443bn in assets under administration, Royal Bank of Canada is Canada's largest financial services institution and one of North America's largest and most highly rated banks.

    With offices in 24 international financial centres, the Royal Bank of Canada can provide a presence in all global time zones. And with offices in key international locations and major financial centres, the bank offers a high level of service and expertise in international financial matters.

    Through its Global Private Banking network, the Royal Bank of Canada has worked with a wide variety of corporations. As a result, the bank has developed comprehensive knowledge of the international financial service requirements of a broad base of industry sectors.

    With worldwide coverage and a global network of invaluable contacts, the Royal Bank of Canada has been able to establish unique working relationships on all continents. These global liaisons have provided RBC with a practical knowledge of legislation and regulations applicable in many jurisdictions, to the enduring benefit of our clients, wherever they may be located.

    Royal Bank of Canada
    This material has been developed from the Royal Bank of Canada's website.