The number of international
insurance entities based in Guernsey grew again during 2007
despite the Island's maturity in the sector and the
difficult market conditions.
As part of this growth over the
past twelve month's, the world's first local authority
captive has been established in the Island, Guernsey's
first major commercial reinsurer has been licensed and the
Island's first insurance writing incorporated cells have
"The increase in the number
of entities domiciled in the Island and the several new
'firsts' that we have seen during the past year
illustrate that Guernsey's international insurance industry
is continuing to perform robustly into 2008," said Peter
Niven, Chief Executive of GuernseyFinance – the
promotional agency for the Island's finance industry.
Figures from the Guernsey
Financial Services Commission (GFSC) show that at the end of
2007 there were 298 traditional captives domiciled in Guernsey.
In addition, between the end of 2006 and the end of 2007 the
number of Protected Cell Companies (PCCs) grew from 68 to 69,
PCC cells rose from 243 to 257, Incorporated Cell Companies
(ICCs) remained at one and the first seven insurance writing
incorporated cells were established – taking the
total number of international insurance entities up to 632.
David Riley, Chairman of the
Guernsey Insurance Companies Management Association (GICMA),
said: "It is positive news that the number of licences in
issue increased during last year despite there being a slowdown
globally in the formation of new captive insurance companies
given soft markets for many types of cover and Guernsey being a
mature captive insurance market.
Guernsey's international insurance sector now has an annual
net premium income of more than £3.4bn. –
double what it stood at ten years ago. This reflects the fact
that as well as more captives being established, corporate
parents are placing more business with existing captives and
there is increased use of the cell company concept, which
allows different companies to use the same captive and where
the individual cells are often bigger than many traditional
Guernsey remains Europe's
leading captive insurance domicile and fourth in the world in
terms of premium written.
During 2007 Guernsey played host
to three more 'firsts': it became home to Gold Coast
City Council Insurance Company Limited – the
world's first local authority captive; Barbican Reinsurance
Company Limited became the first major commercial reinsurer in
the jurisdiction; and Guernsey's first insurance ICC, White
Rock Insurance (Guernsey) ICC, established the first (seven)
insurance writing incorporated cells in the Island.
Last year was the tenth
anniversary of when the Island pioneered the cell company
concept with the introduction of the PCC.
Mr Niven added:
"Developments over the past year illustrate how
Guernsey's international insurance industry is continuing
its tradition of innovation and maintaining business growth by
diversifying its range of products and services to match
evolving client needs."
Statistics from the GFSC show
that last year 40% of all licence applications were from UK
parent companies (compared to 30% from Europe). Therefore while
the UK still remains the largest single source, in percentage
terms it is less significant than in the past as Guernsey's
spread of business becomes more international.
In addition, the GFSC has said
that the new entities are writing a diverse mix of business
from simple deductible infill policies to major
This news comes as the Island is
undertaking a specific promotional campaign to attract
reinsurance business. As part of this Nick Wild, Executive
Chairman (Ex Americas) of JLT Insurance Management, and Mark
Helyar, Managing Partner of law firm Bedell Cristin, Guernsey,
have recently published a capability statement entitled
'Guernsey: Where European Reinsurance and Capital Markets
Converge.' Copies of this document are available on request
from GuernseyFinance by emailing email@example.com or calling +44 (0)
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