Malta is set to become the latest offshore destination for insurance after it joins the EU on 1 May 2004, according to captive managers. It is understood that former Guernsey captive guru Steve Butterworth has been hired by the Malta Financial Services Commission to set up the market. Butterworth retired from the Guernsey Financial Services Commission in November.

A senior market source said a number of UK insurers have visited Malta either looking to set up captives, protected cells or even Gibraltar-style insurers to write UK policies under passport.