Figures from Guernsey's financial services regulator show
that there were 737 international insurers licensed in the Island
at the end of December 2012. This number comprises 242 limited
companies, 68 Protected Cell Companies (PCCs), 404 PCC cells, 5
Incorporated Cell Companies (ICCs) and 18 ICC cells.
It compares to a total of 687 international insurers being
licensed by the GFSC at the end of December 2011, which means there
has been net growth of 50 entities during the year. In that time,
there have been 97 additions, including 4 limited companies, 3
PCCs, 87 PCC cells and 3 ICC cells. There have also been 47
surrenders, comprising 17 limited companies, 3 PCCs and 27 PCC
Fiona Le Poidevin, Chief Executive of Guernsey Finance - the
promotional agency for the Island's finance industry, said:
"These figures show that last year was very successful for
Guernsey as an international insurance centre. The numbers are
particularly impressive considering that general market conditions
mean that organisations are not especially pre-disposed to seeking
out alternatives to the commercial insurance world, such as captive
insurance, which is a key part of the Guernsey offering. I am sure
many other captive insurance domiciles would like to be able to
report such levels of new licences and net growth that we have
achieved during 2012."
A significant number of the licences issued last year relate to
insurance products supporting mortgages being offered to purchasers
of newly built homes in England, Scotland and Wales. They are
backed by the respective governments in the UK and are managed by
JLT in Guernsey. Heritage in
Guernsey is also managing a scheme established for UK housing
associations. These represent another development in the use of the
Guernsey-pioneered cell company concept.
Guernsey's cell company experience, coupled with its
expertise across both insurance and investment fields, was a
significant factor behind Swiss ILS manager Solidum Partners AG establishing Guernsey
reinsurance structures and a related catastrophe reinsurance risk
listing on the Channel Islands Stock Exchange (CISX), which is
the first private catastrophe bond listed on any exchange
In addition, last year, Guernsey became home to another world
first with the launch of the Risk Purpose Trust (RPT). Robus Group, a Guernsey-based provider of
insurance management and corporate services and Marlborough
Trust, a Guernsey-based independent trust company, jointly
launched their Princeps version of the concept towards the end
Miss Le Poidevin added: "Clients continue to choose
Guernsey as the domicile for their captive insurance business
because we offer high standards of service combined with
proportional regulation. This fosters a dynamic environment and
during this last year, we have seen local practitioners building on
Guernsey's tradition of creativity by developing innovative
solutions to meet client needs."
Guernsey has been shortlisted for the 'European captive
domicile of the year' award at the UK Captive Services Awards
2013. They are held on Tuesday 12 February during the Captive Live
UK 2013 event in London on Tuesday 12 February and Wednesday 13
Several Guernsey-headquartered and Guernsey-based firms are also
shortlisted for awards and a number of local practitioners are
attending and speaking at the conference, where Guernsey Finance is
Miss Le Poidevin added: "Guernsey had a very successful
2012 and now we are looking to build on these strong foundations.
The Captive Live event in London marks the start of our insurance
programme for 2013 and it would be a great start to the year if
Guernsey was to win the European captive domicile award. However,
whether Guernsey wins the award or not, we will be looking for
further positive developments during 2013 so we not only maintain,
but enhance our position as the largest captive insurance domicile
in Europe and number four globally."
Independent research carried out by trade publications Business
Insurance (March 2012) and Captive
Review (July 2012) placed Guernsey as the largest captive
insurance domicile in Europe and number four in the world.
Probably the most significant change from previous practice in Guernsey law under the Companies (Guernsey) Law 2008, which came into effect on the 1 July 2008, was the consignment to history of the concept of capital maintenance, which was discarded in favour of a solvency model as the basis of a company’s ability to pay distributions and dividends.
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