Insurance manager JLT is responsible for 45 new cells licensed in Guernsey since March. These come from a protected cell company established in March 2012 as part of the UK government’s NewBuy scheme.
The NewBuy scheme was launched in March by the UK Government and utilises Home Builders Federation’s (HBF) PCC, managed and instigated by JLT. The vehicle provides insurance to the lenders under NewBuy and is the outlet for the UK government’s guarantee.
Nick Wild, managing director of JLT, Guernsey (pictured), said: “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.
“It is very pleasing to have 45 cells already licensed, there are more applications being processed and we expect to have more being submitted to the regulator in due course as well. As HBF PCC is a central part of such an innovative scheme, this is a significant endorsement of both JLT as a manager and also Guernsey as a domicile.”
These 45 cells comprise the vast majority of Guernsey’s net growth in 2012. By May 31, 2012, 52 international insurers were licensed, to make a total of 739 insurance entities.
Protected cell companies (PCCs) now make up about 10% of the total figure, with 68 in the domicile. There are now five new incorporated cell companies (ICCs) and 395 PCC cells. While Guernsey licensed 63 new companies, 11 companies were closed down.
Many industry experts predicted a boom in PCCs as small and medium sized enterprises increasingly use captives, whilst large corporates become a saturated captive market.
Fiona Le Poidevin, chief executive of Guernsey Finance, said: “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.”