A number of new insurance business developments are expected following Guernsey's recent introduction of legislation permitting the setting up of Protected Cell Companies (PCC's}, according to Steve Butterworth, Director of Insurance.
'First, we anticipate growth in rent-a-captive business because the new legislation extends the use of captives from medium to large organisations to hosts of smaller companies and organisations. I also believe, along with many representatives of our insurance industry, that PCC's will interest the promoters of association captives, composite captives involving both life and general insurers, international groups involving numerous autonomous subsidiaries and even insurers who want to separate the life funds of different policyholders into separate cells or classes within one PCC,' he says.
Guernsey's new legislation allows for the creation of PCC's either through the conversion, with the prior consent of the Financial Services Commission, of an existing company or by the creation of an entirely new Guernsey company also provided that it has first been registered or authorised under the Insurance Business (Guernsey) Law 1986 or in the case of umbrella funds, under the Protection of Investors (Bailiwick of Guernsey) Law 1987.
Mr Butterworth says: 'The legislation allows for core capital to be subscribed by insurance companies, insurance managers or participants themselves and, in many instances, can offer an extremely attractive alternative to stand alone captives. The insurance business of different insureds can be written into different cells each of whose assets are protected in law from the liabilities of other cells.'
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.
For further information contact Peter Crook on Tel: +44 (0) 1481 712706 or visit the Guernsey Financial Services Commission Web Site at:
Click Contact Link
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Cyprus offers many key benefits to foreign investors and their dependent family members who are looking for a jurisdiction that offers a gateway to Europe, high quality standards of living and working infrastructure and services.
Investing in distressed assets is not a new phenomenon but current market conditions and the significant quantity of distressed assets remaining on bank and other balance sheets are undoubtedly giving rise to increased distressed trading opportunities globally.
At its most basic level a partnership requires no formalities or registration and is the simplest manner in which to carry on a business. Partnerships have been used for many centuries and were initially governed by common law rules that evolved to regulate both the dealings of the partnership with third parties, and the dealings of the partners with one another.
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).