Figures released by the Guernsey Financial Services Commission (GFSC) show that there were 739 international insurance entities licensed by the Island at the end of May 2012, compared to 687 at the end of December 2011. “There have been 63 new licenses issued and 11 surrenders, which represents 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,” said the GFSC’s bulletin.
Fiona Le Poidevin, Chief Executive of Guernsey Finance – the promotional agency for the Island’s finance industry – observed: “Figures from the GFSC showed that the number of new licenses being issued really accelerated as we moved through last year and I am delighted to see that this trend has continued during the early months of 2012.
“We are seeing new licenses 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 license applications in the pipeline but we are also hearing from the industry that there are a number of other opportunities coming through as well.”
The GFSC noted that JLT Insurance Management in Guernsey reported that as of July 2, “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 percent 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, stated: “We are delighted that JLT in Guernsey has been able to play a key role in the launch of the NewBuy scheme. 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.”
The GFSC also noted that there are “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: “It is encouraging that Captive Review shows Guernsey retaining its position as the leading captive domicile in Europe and number four globally. However, it is not particularly surprising given the figures we have seen coming through and it reflects the results of a similar report from Business Insurance earlier this year.
“What is even more impressive is that our position is supported by strong assets under management and premiums written within these structures, our performance in the last year has been superior to many of the other domiciles and of course, this survey does not include individual PCC cells, which are a strength of ours since we pioneered the concept in 1997.”
Source: Guernsey Financial Services Commission