Figures from the Guernsey Financial Services Commission (GFSC) showed that there were 739 international insurance entities licensed in the island at the end of May 2012 compared to 687 at the end of December 2011. There have been 63 new licences issued and 11 surrenders, giving net growth of 52 entities domiciled in the island.
As at 31 May 2012, there were 344 international insurers, comprising 254 companies, 68 Protected Cell Companies (PCCs), 5 Incorporated Cell Companies (ICCs) and 17 ICC cells, as well as 395 PCC cells.
Fiona Le Poidevin, chief executive of Guernsey Finance said: “We are seeing new licences issued across the different types of structures available but there has been especially strong growth in the number of cell companies being formed. A significant proportion of these relate to a PCC managed by JLT on behalf of the NewBuy scheme and where there are even more licence applications in the pipeline but we are also hearing from the industry that there are a number of other opportunities coming through as well.”
JLT Insurance Management in Guernsey reported that, as at 2 July 2012, 45 cells had been licensed in relation to a PCC it has established as part of the UK’s NewBuy scheme. The NewBuy scheme was launched in March by the UK government, in conjunction with the Home Builders Federation (HBF) and the Council of Mortgage Lenders (CML), to offer prospective home owners newly built properties with 95% mortgages underwritten by house builders and the UK Government. The HBF PCC in Guernsey provides the insurance to the lenders under NewBuy as well as being the conduit for the guarantee from the UK Government.
Nick Wild, managing director of JLT Insurance Management (Guernsey) limited, said: “We have broken new ground with many aspects in the design of this insurance coverage and the PCC structure. Guernsey PCC legislation has once again proved its flexibility and the GFSC has done a great job processing the large number of cell applications.
Guernsey Finance also highlighted a report produced by trade title Captive Review this month which showed that Guernsey has retained its position as the largest captive insurance domicile in Europe and number four globally. The survey of captive domiciles was based on figures to the end of 2011 and excluded individual PCC cells (on the basis that these are not distinct legal entities from the PCC core).
It revealed that there were more captives domiciled in Guernsey (343) than any other jurisdiction in Europe, followed by Luxembourg (242), the Isle of Man (132) and then Ireland (101). Globally, the largest captive domicile is Bermuda (862), followed by Cayman (739), Vermont (590) and then Guernsey (343).
Le Poidevin added: “There is a real focus on making use of the structure to provide some innovative solutions, for example in the form of Insurance-Linked Securities (ILS) where Guernsey’s experience and expertise across both the insurance and investment sectors make the Island an ideal home for such structures.”
