Introduction
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.
Click here for more information on pension longevity swaps >
Advantages
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
Jamie Polson
As Managing Director, Jamie has overall responsibility for the Guernsey office. He has over 25 years experience in the finance sector, beginning his career in private banking and moving into the insurance industry in 2001. Jamie has been a Board member with Robus since joining the company in 2014 and provides a wealth of risk management expertise along with a strong background in accounting, corporate governance, company secretarial, compliance and regulatory.
Over the past 20 years Jamie has managed a significant and diverse range of licensed insurers. This includes some of the largest captives in Guernsey along with many commercial general insurers and reinsurers. He also has years of experience as a director on PCCs which are set up for the provision of ILS.
(Guernsey)
Key Contacts
You can download our flyer on PCCs and ICCs here, but we’d prefer to talk to you to understand your business and provide tailored advice.
JAMIE POLSON | Managing Director Guernsey & Group Finance Officer
T +44 (0)1481 742556 E jamie.polson@robusgroup.com
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