Cell Captives
Offering clients an equity participation in a licenced insurer through a shareholding agreement.
Offering clients an equity participation in a licenced insurer through a shareholding agreement.
Guardrisk’s cell structure offers clients an equity participation in a licensed insurer through a shareholding agreement. The structure is likened to that of a honeycomb with separate classes of shares and 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, as cell owner, is afforded the risk financing and conventional insurance capabilities enjoyed by a licensed insurer.
Cells are a valuable risk management tool, providing companies with a vehicle in which to write their own insurance risks. Risks which are typically insured in a cell are excess buy down layers or risks which are uninsured or uneconomical to insure in the conventional insurance market. Risk identification is based on a sound understanding of the client’s business and its associated risk spectrum.
Cells allow participants to access the conventional insurance and reinsurance markets directly and cost-effectively to cover the excess and catastrophe exposures.
Cells are a useful corporate governance and risk management tool as they provide organisations a single vehicle in which to insure all enterprise related risks.