This Is Guernsey

By Tom Edwards

THE number of international insurance companies based in Guernsey grew during 2007 despite the island’s maturity in the sector and difficult market conditions. The world’s first local authority captive has been established, as well as the island’s first major commercial reinsurer being licensed and the first insurance-writing incorporated cells have come on stream.

GuernseyFinance chief executive Peter Niven said: ‘The increase in the number of entities domiciled in the island and the several new ﾓfirstsﾔ that we have seen during the past year illustrate that Guernsey’s international insurance industry is continuing to perform robustly into 2008.’

GFSC figures show that at the end of last year 298 traditional captives were domiciled in Guernsey.

Between 2006 and 2007, the number of protected cell companies (PCCs) grew from 68 to 69 and PCC cells rose from 243 to 257.

Incorporated cell companies (ICCs) remained at one and the first seven insurance writing incorporated cells were set up - taking the number of international insurance entities to 632. Last year Guernsey became home to the world’s first local authority captive - Gold Coast City Council Insurance.

Barbican Reinsurance became the first major commercial reinsurer in the jurisdiction and Guernsey’s first insurance ICC, White Rock Insurance (Guernsey), set up the first seven insurance writing incorporated cells here.

The island remains Europe’s leading captive insurance domicile and fourth in written premium.

Guernsey Insurance Companies Management Association chairman David Riley said it was positive news.

‘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,’ he said.

‘In addition Guernsey’s international insurance sector now has an annual net premium income of more than £3.4bn - double what it stood at 10 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 product.

‘This allows different companies to use the same captive where the individual cells are often bigger than many traditional captives.’

n Copies of a document entitled ‘Guernsey: Where European Reinsurance and Capital Markets Converge’ are available from GuernseyFinance by emailing info@guernseyfinance.com or calling 720071.