(Update Issue Number 8 Autumn/Winter 1996)
The Island maintains its position as the fastest growing and largest captive insurance company location in Europe. A net gain of 18 between 1 January and the end of September to bring the total number of captives to 315 and the total of offshore insurers to 327.
Notable registrations this year include a second for the Halifax Building Society. Its first, like those of seven other UK societies including Britannia, covers mortgage indemnity. Halifax's second captive, the first of its kind, offers the first-time buyer a guarantee covering the risk of negative equity. The development follows new legislation in the UK permitting building societies to form insurance subsidiaries other than those covering mortgage indemnity.
From the UK have come two major transport operations, British Energy, the Post Office and the Medical and Dental Defence Union of Scotland.
Asea Brown Boveri (ABB) has formed two captives - ABB Power Re which covers gas and turbine and ABB Re which has relocated to Guernsey from Dublin. ABB is a global $34 billion engineering group with 210,000 employees worldwide. Chris Noon, ABB's general representative, said: 'In coming to this decision ABB considered a number of factors and selected Guernsey because it is the European centre for captive operations and combines this with an excellent regulatory environment.'
The Post Office has formed PostCap Guernsey Ltd, a captive subsidiary writing insurance for its low risk-liabilities. Initially the PO will transfer existing self-funded personal accident scheme and employer's liability risks to the captive which will also facilitate more precise tailoring of its risk financing plans.
Another recent captive has been established by the Home Loan Guarantee Company, of South Africa, which provides financial guarantees to lenders in the country's home loan market. By setting up a Guernsey captive, Home Loan Guarantee has increased its capacity to support lenders in South Africa where the government has targeted the building of a million new homes in 10 years.
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