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
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