The surrenders were mainly due to mergers and acquisitions of the captive parents. None of the captives were closed down because of financial difficulties.
Notable registrations during the year included captives set up by the Post Office (to write insurance for their low risk liabilities), British Energy Plc, National Express Group plc, the Medical & Dental Defence Union of Scotland, the Britannia Building Society and the Halifax Building Society. The latter insures customers against negative equity and Halifax is the first of the building societies to take advantage of new legislation which allows societies to form insurance subsidiaries other than for mortgage indemnity. Asea Brown Boveri (ABB), a global $34 billion engineering group, also registered two captives in Guernsey during the year.
As in previous years, the principal source of business remained the United Kingdom, with 25 out of the 40 new companies having a U.K. parent. However, there was a larger geographical spread this year, including Continental Europe, the Americas, Australia and the Far East. Four captives with South African parents were also registered, including Home Finance Guarantors (Insurance) Limited. This was set up by the Home Loan .Guarantee Company which provides guarantees to lenders in the country's home purchase market. By establishing this captive, Home Loan Guarantee has increased its capacity to support lenders in South Africa and, therefore, will no doubt play a significant role in helping the South African Government meet its target of building a million new, low cost homes over the next decade.
Following the merger Aon, Bain Hogg and Alexanders, the local captive management operations have joined forces to create Guernsey's largest insurance manager with over 80 registered companies. There were also three new captive managers authorised during 1996.
Legislative developments include progress on the proposed new legislation to supervise insurance intermediaries. The consultation stage is now over and the drafting process nearing completion. Work has also been finalised on protected cell companies and the resultant legislation (The Protected Cell Companies Ordinance, 1997) came into force on 29 January. Protected cell companies can be used in the context of both insurance and investment business. In the case of insurance, PCCs allow for core capital to be subscribed by insurance companies, insurance managers or participants themselves and can offer a practical alternative to stand-alone captives. The insurance business of different insurers can be written into different cells each of whose assets are protected in law from the liabilities of other cells. It is also possible given consent of the Commission to convert an existing company into a PCC.
INSURANCE COMPANY ACTIVITY DURING 1996
Total as at December 1995 307
New registrations during 1996:
World Traveller Insurance Limited
Anchorage Insurance Company Limited
Panrexa Insurance Limited
Cronos Containers Insurance Limited
Britsafe Insurance Services (Guernsey) Limited
Flightform Insurance Limited
Horizon Holidays Insurance Limited
Bee Insurance Limited
Seafield Marine Insurance Company Limited
Lochside Insurance Limited
Travel Managers Insurance Company Limited
Mid-Pacific Reinsurance Company Limited
Railtrack Insurance Limited
United Kenning Rental Group Insurance Services Limited
Brownstone Insurance Limited
Sure-ha International Limited
PI Insurance Company Limited
Millennium Life Assurance Company Limited
Gamond Insurance Company Limited
Garlan Insurance Limited
Pi Underwriting Limited
Broom Insurance Company Limited
MDDUS Insurance Limited
Home Finance Guarantors (Insurance) Limited
ABB Reinsurance Company Limited
ABB Power Insurance Limited
Halifax Guarantee Insurance Company Limited
Senator Insurance Limited
Acacia Insurance Guernsey Limited
Geest (Guernsey) Limited
Martin Dawes Reinsurance Limited
Bantam Insurance Company Limited
PostCap Guernsey Limited
National Express Guernsey Limited
Mutual Indemnity (Bermuda) Limited
Scimitar Insurance Company Limited
Burnaby Insurance (Guernsey) Limited
Transcor Insurance Limited
Kingsmill Insurance Company Limited
UNIC Insurance Limited 40
SURRENDERS DURING 1996:
Catoc Reinsurance Company Limited
Capacity Resources Insurance Company Limited
Caldaire Insurance Limited
Northwind Insurance Limited
Normandy Re Limited
The London & Channel Islands P & I Association
W&P Insurance Limited
Rusica International Insurance Company Limited
PC Insurance Company Limited
Stag Insurance Limited
Bankside Insurance Company Limited
Prolific International (Guernsey) Life Assurance Limited 12
TOTAL AS AT 31 DECEMBER 1996 335
NOTES FOR EDITORS
As at 31 December 1996, the total of 335 offshore insurance
companies registered broke down as follows:
Pure captives 283
Broad captives 23
Commercial captives 18
.......
Total Captives 324
Offshore life (active) 5 (Generali Worldwide, Nordben, Old
Mutual International, South African
Mutual, Sun Alliance)
Offshore life (running off) 6 (Abtrust, Continental Life, Cornhill
Ins. (Gsy), European Life (CI),
Finistere, Premium Life)
........
335
GUERNSEY - CAPTIVE ADDITIONS 1996
PARENTAGE NO. %
AUSTRALIA 1 2.5
BENELUX 3 7.5
BERMUDA 1 2.5
FAR EAST 1 2.5
MIDDLE EAST 1 2.5
SOUTH AFRICA 4 10.0
SWEDEN/
SWITZERLAND 3 7.5
UK 25 62.5
U.S.A. 1 2.5
TOTAL 40 100.0
For further information contact Peter Crook on Tel: +44 (0) 1481 712 706 or fax: +44 (0) 1481 712 010 or e-mail: info@gfsc.guernseyci.com
Visit the Guernsey Financial Services Commission Web Site at Click Contact Link
The content of this article is intended to provide a general guide to the subject matter. Specialist advise should be sought about your specific circumstances.
