This has helped push the net number of international insurance
entities licensed in Guernsey up by 12, from 675 at the end of 2010
to 687 at the close of 2011.
Fiona Le Poidevin, Deputy Chief Executive of Guernsey Finance
– the promotional agency for the Island's finance
industry, said: "The latest figures show that there have been
far more licenses issued during 2011 than the immediately preceding
years and this is across the range of entities from conventional
captive insurance companies, PCCs [Protected Cell Companies], ICCs
[Incorporated Cell Companies] and in particular, PCC and ICC
"These additions significantly outweigh the number of
surrenders during the same period and we are aware of several more
entities which are being licensed during the very early part of
2012. These developments are expected to see the value of our
international insurance sector rise yet further from the current
strong position reached through growth in recent years.
"The new figures cement Guernsey's status as the
largest captive insurance domicile in Europe and among the top four
the world. This is a message we are keen to reinforce as we
continue to promote Guernsey's risk management credentials to
both London and wider introducer markets during 2012."
The figures show that during 2011 there were 72 new
international insurance licenses issued in Guernsey, comprising 6
companies, 12 PCCs, 40 PCC cells, 1 ICC, 7 ICC cells and 6 life
This meant that at the end of December 2011 the net total number
of licensed international insurance entities stood at 687, made up
of 255 companies, 68 PCCs, 267 PCC cells, 5 ICCs, 15 ICC cells and
77 life policy cells.
Towards the end of 2011 there has been notable media interest in
two particular new schemes with links to Guernsey. Broking firm
Acumus has launched the Guernsey-based Igloo Insurance PCC Limited.
Three UK housing associations have joined the scheme by taking
cells in the PCC to insure property risks while avoiding market
volatility and a number of other associations are expected to join
during 2012. It is managed by Heritage Insurance Management Limited.
The Jardine Lloyd Thompson Group (JLT) has
announced that its Guernsey office will play a key role in a new
mortgage indemnity insurance scheme being introduced in the UK. The
Home Builders Federation (HBF) and the Council of Mortgage Lenders
(CML) have created the scheme, which will see mortgages on new
build homes underwritten by house builders and the UK Government.
By insuring the risk of default losses, the scheme allows lenders
to offer 95% loan to value (LTV) mortgages on new homes.
Martin Le Pelley, Chairman of the Guernsey International Insurance Association
(GIIA), said: "It is extremely encouraging for
Guernsey's insurance market that we are seeing such positive
trends at a time when an economic and political storm is engulfing
the rest of Europe.
"In fact, the uncertainty created by the credit crunch and
subsequent recession emphasise how important proper risk management
is within companies operating in the European market and elsewhere.
Guernsey has been well-placed to assist companies in this regard
due to our breadth of experience and reputation for quality.
"As a result of the decision not to seek equivalence with
the proposed European regulatory regime, Solvency II, our
internationally compliant insurance regulations continue to provide
the local industry and also our current and potential clients with
certainty and clarity regarding the regulation of insurance
business in Guernsey. This has, no doubt, contributed to the growth
of the market during 2011."
GFSC information shows that 63% of licenses issued in 2011 were
to entities with parents in the UK but there was also new business
from other parts of Europe, North America, the Caribbean and Asia.
The GFSC has also released data for 2010 which shows that the
Guernsey international insurance industry had gross assets of
£21.4 billion, a net worth of £8.5 billion and premiums
written totalling £4.1 billion.
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