UK FTSE 100 companies may collectively save almost £100 million per year by using Guernsey captives, according to research by economic consultancy Frontier Economics.
The report also noted that Guernsey is Europe’s largest domicile for captive insurance, which leads to insurance business flowing through London’s wholesale insurance markets. “Without the island’s expertise and regulatory framework, this business would go elsewhere,” says the consultancy.
Other key findings are that Guernsey-based funds have channelled an additional £13 billion into the UK economy, with the island’s fund managers currently holding UK assets worth £57 billion.
Additionally, the report noted that the jurisdiction’s finance sector provides over £3 billion of social value to the UK. Aligned with UK policy, Guernsey funds are supporting small and rapidly growing businesses in the UK, as well as investing in infrastructure such as green power generation assets and facilitating improvements to the housing stock.
This demonstrates Guernsey’s commitment to several UK policy priorities such as the transition to net zero, infrastructure funding and regional investment. Guernsey’s insurance, pension and private wealth sectors also have a positive impact, Frontier Economics said.
Rupert Pleasant, CEO of Guernsey Finance, comments: “This report has been key in highlighting the value of Guernsey to the City of London and the UK more broadly.
“The island’s financial services industry has played a significant role in increasing the international competitiveness of UK financial services providers, improving risk-adjusted returns and diversifying portfolios. It represents a mutually beneficial collaboration.”
