Gibraltar has launched a new category of protected cell company (PCC) tailored for the insurance-linked securities (ILS) sector.
The new category of PCC, which will be known as the SPV PCC, will be regulated under Gibraltar’s Insurance Companies (Special Purpose Vehicles) Regulations 2009.
The SPV PCC will only be permitted to establish cells that are 100 percent collaterised. The solvency capital requirement for the core capital of the SPV PCC will be £500.
Albert Isola, Gibraltar's minister of financial services, said: “The launch of SPV PCCs is the next step in our ambition to become the premier ILS jurisdiction within the EU. The SPV PCCs will complement Gibraltar's existing standalone insurance SPVs.”
In April this year, Gibraltar completed its first ILS transaction with online lottery provider Lottoland, for €100 million.
The ILS was placed within the EU by means of an issuance vehicle, Euroguard Insurance Company Protected Cell Company, also based in Gibraltar.
Gibraltar’s government previously announced its ambitions to establish itself as an ILS jurisdiction within the EU in April of this year.
