Robus are experts in the field of cell companies and can use their experience to deliver reduced costs, ringfence liabilities, and optimise capital.
Solutions range from simple cell management to new Protected or Incorporated Cell Company set up, licensing and on-going management.
A Protected Cell Company (‘PCC’) is one legal entity divided into the Core and multiple Cells, similar in design to a hub and spoke with the core at the centre surrounded by Cells. Separately identifiable Cells are created and owned by the same or separate cell users under which the assets and liabilities of each cell are legally segregated from each other under statute.
An Incorporated Cell Company (‘ICC’) is similar to a PCC however comprises multiple incorporated and licensed cells that are separate legal entities, which allows Cells to contract with each other. Whether a PCC or ICC is used is largely down to client preference.
Pretty much anything can be placed into a PCC or ICC Cell, so they provide a flexible alternative to traditional captive insurers, and can also be used to structure investment products, hold assets, and as Special Purpose Vehicles (‘SPVs’) for securitisation transactions, including Insurance Linked Securities (‘ILS’).
ILS can be used to spread and transfer insurance risk, particularly for high severity, low probability events and therefore are suitable for the management of collateralised catastrophe reinsurance, sidecars and transformers.
More recently ICCs have been used to facilitate pension longevity swap transactions.
Ability to set up in around 1 week for insurance linked securitisation to 5 weeks for a more traditional cover;
Operating costs are generally lower than a standalone captive because certain expenses are shared between the overall PCC e.g. directors’ fees;
There is no requirement for Cell owners to attend board meetings as their control is exercised via a Cell Operating Agreement;
Protected Cells are not publicly disclosed.
Unrivalled expertise and experience
Ultra-fast set up and exit
Low cost with flat deal fees irrespective of size
Cells in Robus’ own PCC and ICC
We welcome the opportunity to talk to you about your circumstances and investigate options tailored to your business which will deliver tangible benefits. For further information on PCCs and ICCs please contact our Guernsey team: