Our company’s cell structures allow clients an equity participation in a licensed insurer through a shareholding agreement. The structure is similar to that of a honeycomb with separate classes of shares, with each class comprising a business cell. Each cell is represented by a separate class of ordinary shares with specified dividend rights. Clients subscribe for these shares, and the client, who is the cell owner, is afforded the risk financing and conventional insurance capabilities enjoyed by a licensed insurer. As a valuable risk management tool, cells provide a vehicle for companies to write their own insurance risks. Typical risks which are insured in cells include excess buy down layers and risks not insurable or uneconomic to insure in conventional markets. Cells allow clients to access the conventional insurance and reinsurance markets directly and to cost-effectively cover the excess and catastrophe exposures.
Key benefits of Cell Captives
- Assist in reduction of the cost of conventional insurance.
- Allows the companies to retain risk and share in the profit potential of an integrated risk management programme.
- Investments provide interest returns and increases risk carrying capacity.
- Provide access to direct insurance and reinsurance markets locally and globally.
- Flexible to structure customized insurance programmes for specific clients.
- Actuarial input provides correct cell retentions and solvency levels.