Vital statistics:

Local name for the service:

Cell Captive Insurance Companies

Name of cell captive law:

There is no specific legislation for cell captives in South Africa – they fall under the Short-term and Long-term Insurance Acts which were passed in 1998 and became effective on 1 January 1999

Total number of cell companies:

As at 31/03/2009 – active long-term insurers – 7; active short-term insurers – 11

Total number of individual active cells:

Short-term - as at end 2007 the number of active cells (including 1st party, 3rd party and promoters’ cells) was 182. In terms of the statutory long-term insurance return the information is not explicitly requested.

Capitalisation requirements:

Short-term insurance - R3m (South African Rand) or 15% of annual net written premium plus additional contingency reserve. Long-term insurance - R10m or 1 times the prescribed minimum capital adequacy requirement

Licensing Fees:

Non refundable application fee: R16,068. Registration fee: R11,455

Tax regime for cell companies/cells:

Residents’ and entities’ based tax regime – meaning: South African residents and entities are taxed on their world wide income, taking into account any double taxation agreements. Contractual cell companies are taxed at the rate applicable to traditional insurers.

Regulatory contact details:

Registrar of Long-term and Short-term Insurance, Financial Services Board. Tel: +27 012 428 8050; Email: jonathand@fsb.co.za

PCCs in South Africa:

View manager contact details