The Guernsey Financial Services Commission (GFSC) has licensed a total of 46 international insurance entities during the first half of 2013.
GFSC figures show that there were 766 international insurers in the island at the end of June 2013. The number comprises of 241 limited companies, 70 protected cell companies, 428 PCC cells, 5 incorporated cell companies and 22 ICC cells.
The figures compare to a total of 737 international insurers being licensed by the GFSC at the end of December 2012, meaning a net growth of 29 entities during the first six months of the year.
Fiona Le Poidevin (pictured above), chief executive of Guernsey Finance, said: “The numbers are particularly impressive considering that they follow a very strong performance during the past couple of years. This continued growth during the first half of the year shows the ongoing attraction of Guernsey as a domicile that can provide solutions to meet a range of different risk management needs.”
Nick Wild, executive chairman, global (ex Americas) at JLT Insurance Management in Guernsey, said that during the first half of the year his firm has overseen the incorporation of the first insurance-licensed ICC entity in Guernsey with an Asian headquartered parent.
“The ICC structure appeals to Asian clients because enterprises are often owned by one family but with individual members responsible for different parts of the business. The ICC allows the group business risks to be under one umbrella but the separate assets and liabilities to be managed through individual cells which can become their own profit centres,” he said.
Paul Sykes, managing director of Aon in Guernsey and the current chairman of the Guernsey International Insurance Association, said: “We have seen an uptick in insurance linked securities (ILS) cells being launched. 1 January, 1 April and 1 June are notable dates in the reinsurance calendar for business being conducted and this June saw funds investing into catastrophe risks establishing a number of new cells to issue reinsurance contracts to the markets.”
Poidevin added: “These comments from local practitioners, coupled with the statistics from the GFSC, show that Guernsey remains attractive for traditional captive insurance but that we are also diversifying our service base, in terms of the type of risk management and the geographical origin of this business.”
