Purbeck Insurance Services, a specialist provider of Personal Guarantee Insurance (PGI), has launched Purbeck Reinsurance Limited, a newly established captive insurance subsidiary domiciled in Guernsey. The launch marks a milestone for the managing general agent (MGA) as it takes a direct share of insurance risk. To date, Purbeck has protected more than 5,000 directors on £700 million of personal guarantee commitments. Purbeck Reinsurance Limited has been capitalised by Purbeck and will assume a quota share of insurance risk ceded by the fronting insurer. This means the company is now directly ‘on risk’ for a portion of claims arising from its PGI policies. The quota share arrangement aims to reinforce confidence in Purbeck’s product design and underwriting discipline while aligning its financial interests with the resilience of its clients’ businesses. Todd Davison, managing director of Purbeck Insurance Services, says: “The launch of Purbeck Reinsurance Limited is a clear statement of intent. By taking a direct share of the risk, we are demonstrating that we truly stand alongside the SME owners we support. When our clients succeed, we succeed – and when challenges arise, we step in to help prevent failure and thus help them avoid a claim.” Davison notes that 75 per cent of businesses in financial distress supported by the firm trade out successfully rather than fail. He adds: “Our mission from day one has been to build a sustainable model that reflects our belief in responsible lending, informed risk-taking and better outcomes for directors. Having capital at risk sharpens our focus on underwriting quality and claims management, which ultimately benefits commercial brokers, lenders and SME clients alike.” The decision to domicile the captive in Guernsey reflects the island’s established reputation as an international centre for insurance and reinsurance, offering regulatory oversight and expertise in captive structures. Purbeck is the UK’s only specialist provider of personal guarantee insurance. The move underlines the company’s ambition to play a more active role in managing risk across the SME funding ecosystem.
