Captive International
News in brief
It has been a busy start to the year for the European captive insurance industry, with several well-known captive managers announcing new offices, various high-profile hires, companies expanding their captive offerings and warnings on tax. Here are a few of the highlights of Captive International’s news coverage from Europe in recent weeks.
SRS opens office in Guernsey
Strategic Risk Solutions (SRS) is opening an office in Guernsey. It has hired Peter Child, the former head of Artex’s European operations and assistant director of the insurance division at the Guernsey Financial Services Commission, as managing director of SRS Guernsey Management.
Child will officially take up his position in July 2021 and will assume responsibility for the development and oversight of SRS’s business in Guernsey. SRS said it wants to build a strong team in Europe—especially in the commercial insurance and insurance-linked securities segments, in line with what it has achieved in the US.
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Davies launches new Guernsey office
Davies has launched a new captive management facility in Guernsey following regulatory approval from the Guernsey Financial Services Commission.
The Guernsey operation complements Davies’ established captive management operations in Bermuda and the US, following its acquisition of Citadel Risk in June 2020. The arrival of Citadel added “scale and reach to its established captive management services”, a statement by Davies said.
Davies Management Services (Guernsey) will deliver a full captives management capability including feasibility studies, incorporation services, programme structure advice and exit solutions.
The captive insurance management operation sits within the insurance services division, of which Steven Crabb is chief executive officer.
In addition to captives management, the division provides incubation solutions, delegated authority administration, legacy management, credit control and audit to insurers, re/insurers, managing general agent and brokers across the global insurance market. For more on this story click here
Barclays names new head of corporate strategic solutions
Faisal Ansari has been named as head of the newly formed corporate strategic solutions team at Barclays Corporate Banking in London, which oversees the captives business, as well as escrow, securitisation services and corporate banking in the Crown Dependencies.
Ansari has worked with banks in four countries, managing regional business units and global product solutions and was most recently responsible for growing the escrow solutions team for Corporate Banking at Barclays.
He described captives as “a key growth initiative for Barclays Corporate Banking”.
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Guernsey licenses seven captives in 2020
Guernsey licensed seven new captives in 2020, including three captives and four captive cells. It also licensed two special purpose vehicles. The new launches mean Guernsey ended 2020 with 291 licensed captives and 43 special purpose vehicles—a slight drop from 2019, with 18 captives or cell licences surrendered.
However, Guernsey still has more than a third of all Europe’s captive business, according to Guernsey Finance. Guernsey noted that 2021 has started strongly, with a new captive, a cell company and several individual cells.
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IoM launches captives digital marketing campaign
Finance Isle of Man has launched a digital marketing campaign to promote its captive insurance offering, highlighting the benefits of establishing a captive on the island. The campaign emphasises the Isle of Man's regulatory and legal infrastructure, as well as its spirit of collaboration, which enables the sector to quickly adapt to the needs of businesses on the island.
IoM is home to more than 100 captive insurance companies and other businesses that offer them services.
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SRS makes three hires in its new Zurich office
SRS has also opened an office in Zurich, Switzerland, and hired Markus Beck, Georg Balint and Maria Sandoval from Aon to grow the business there. Beck will be a managing director at SRS in Switzerland when he takes up his post on April 1, 2021, leading the Swiss insurance management practice.
Balint, who has already started at SRS, is also a managing director and leads the Swiss actuarial practice. Sandoval will take up the post of senior account manager on March 1, 2021, supporting Swiss-domiciled clients.
Brady Young, chief executive officer at SRS, said: “With its vigilant regulatory regime and stable operating environment, Switzerland is a key market for SRS, so this is another milestone in our goal of expanding the global reach of our company.”
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Robus names Steve Quinn as chairman
Robus has named Steve Quinn as chairman. Quinn has 30 years’ experience in financial services and was founder and managing director of Quest Group in Gibraltar, which was sold in 2016. He is also a former managing director of Premier Group in Gibraltar.
Richard Le Tocq, chief executive of Robus, highlighted Quinn’s “considerable expertise in his field”, calling him “a proven leader in the independent insurance management marketplace”. For more on this story click here
Upson joins Robus to lead its PCC
Justin Upson has also joined Robus as a director of the Guernsey office to lead its protected cell company (PCC) as well as taking on operational responsibilities for several captives and commercial insurance companies.
Upson has worked in the Guernsey finance industry for 30 years, predominantly in finance-related roles, having spent 19 years at Aon Insurance Managers in Guernsey.
He has managed captives and PCCs in a range of industries, including banking and finance, accounting, transportation, pharmaceutical manufacturing, beverage manufacturing and distribution, insurance, investment and bloodstock. For more on this story click here
Wilton boosts captives offering
Isle of Man-based Wilton Group will boost its captives offering through the acquisition of a group of companies that focus on captive insurance management, life and general insurance and the administration of retirement benefit schemes.
The IOMA companies, comprising Isle of Man Assurance, IOMA Horizons and Isle of Man Insurance Management, employ 29 people and manage close to £500 million in assets.
Wilton said it plans to retain and strengthen IOMA’s team with the addition of its UK and Isle of Man-based financial services and insurance/investment professionals.
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UK captives owners can expect increased tax scrutiny: Deloitte
UK-based captives owners should be prepared to face increased tax authority scrutiny over the coming years, according to a note by Deloitte. The consultancy said captives are particularly likely to attract increased attention from tax authorities if they use outsourced operating models and have low headcounts or are supported by onshore risk management functions.
Prospective owners should consider their tax position before launching a captive, and keep the situation under review, it added.
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