The year 1995 was another good one for the offshore insurance industry in Guernsey: the total of 37 registrations was a new record. Five companies surrendered their certificates, giving a net growth of 32, and bringing the number of insurers registered as at the end of December to 312 (300 captives and 12 offshore life companies).
Thirty-six of the new insurers were captives, the other being The South African Mutual Life Insurance Society (trading as Old Mutual Guernsey), a branch operation set up to transact life business from Guernsey.
The captive market has seen a year of expansion. As well as the additional business coming from the new companies registered during the year, many captives have been expanding their existing insurance programmes. There has also been a definite trend of geographical diversity, with keen interest being shown by continental European companies in captive and other insurance arrangements in Guernsey.
Notable additions during the last twelve months have been the London Transport captive as well as captives for both Alliance & Leicester and Chelsea Building Societies, both of which are writing mortgage indemnity insurance. More recently the Republic National Bank of New York has become the latest banking organisation to set up a captive in Guernsey. The Medical Defence Union Ltd, formed in 1865 and UK's largest medical legal assistance organisation, is experiencing escalating claims against its medical practitioner members and has reacted by forming a new Guernsey-based insurer, set up after an extensive feasibility study.
The rent-a-captive, as an alternative to establishing a separate insurance company, has continued to be an option of growing interest and the association captive route has also proved popular with several new association-type captives being established. This area looks set to expand still further in 1996. The States of Guernsey is to be asked at its February meeting to sanction new company law provisions governing so-called "protected cell companies" for use as rent-a-captives and the legislation should be in place by the Autumn.
Norwich Union Insurance Company (Guernsey) Limited
SDH Insurance Company Limited
Serco Insurance Company Limited
Shield Insurance Company (Guernsey) Limited
South African Mutual Life Assurance Society
Southon Insurance Company Limited
SRH Reinsurance Company Limited
Tain Insurance Company Limited
Thame Insurance Company Limited
Watertight Insurance Limited
White Rock Insurance Company Limited
W.S. Atkins Insurance (Guernsey) Limited 37
Surrenders during 1995:
A.A. Reinsurance Company Limited
Monument Marine & General Reinsurance Company Limited
Morgan Grenfell Insurance (Guernsey) Limited (5)
Total at 31 December 1995 312
Notes for editors
As at 31 December 1995, the total of 312 offshore insurance companies registered broke down as follows:
Pure captives 259 (11 running off)
Broad captives 20 (2 running off)
Commercial captives 21
Total Captives 300
Offshore life (active) 5 (Generali Worldwide, Nordben, Old
International, South African Mutual
Offshore life (running off) 7 (Abtrust, Continental Life, Cornhill
Ins (Gsy), European Life (CI),
Finistere, Prolific International,
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
For further information contact Peter Crook, Director General, Tel:(01481) 712801,Fax:(01481) 712010 (International dialling: 44-1481.
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.
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).