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18th of May 2012

Guernsey sees 53% growth in captives, PCCs and ICCs

Vicky Beckett 17/01/2012

Guernsey has seen a 53% rise in licensed international insurers during 2011, licensing six captives, 12 protected cell companies (PCC) and 40 PCC cells.
 
One incorporated cell company (ICC), seven ICC cells and six life policy cells were also licensed last year.
 
The Guernsey Financial Services Commission (GFSC) licensed 72 international insurers in total last year, compared to 47 in 2010.
 
This makes the total number of international insurance entities 687 at the close of the year.
 
Fiona Le Poidevin, deputy chief executive of Guernsey Finance, said: “The latest figures show that there have been far more licenses issued during 2011 than the immediately preceding years and this is across the range of entities from conventional captive insurance companies, PCCs, ICCs and in particular, PCC and ICC cells.
 
“These additions significantly outweigh the number of surrenders during the same period and we are aware of several more entities which are being licensed during the very early part of 2012.”
 
Martin Le Pelley, chairman of the Guernsey International Insurance Association (GIIA), said: “It is extremely encouraging for Guernsey’s insurance market that we are seeing such positive trends at a time when an economic and political storm is engulfing the rest of Europe.
 
“In fact, the uncertainty created by the credit crunch and subsequent recession emphasise how important proper risk management is within companies operating in the European market and elsewhere.
 
“As a result of the decision not to seek equivalence with the proposed European regulatory regime, Solvency II, our internationally compliant insurance regulations continue to provide the local industry and also our current and potential clients with certainty and clarity regarding the regulation of insurance business in Guernsey.
 
He added: “This has, no doubt, contributed to the growth of the market during 2011.”
 
GFSC information shows that 63% of 2011 licenses were issued to UK-parented entities.
 
GFSC data for 2010 shows the Guernsey international insurance industry had gross assets of £21.4bn, a net worth of £8.5bn and premiums written totalling £4.1 billion.
 
At the end of December 2011 the net total number of licensed international insurance entities stood at 687, made up of 255 companies, 68 PCCs, 267 PCC cells, 5 ICCs, 15 ICC cells and 77 life policy cells.

Tags: Captive, Cell, Company, Finance, Fiona Le Poidevin, GFSC, Guernsey, Incorprated, Insurance, Martin Le Pelley, PCC, Protected

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