Euroguard

On implementation of a structured insurance programme, the protected cell owner purchases a unique class of preference shares in Euroguard. Each share block comprises a distinct class of non-voting preference share carrying a dividend entitlement related to the insurance business of that particular protected cell. The shares issued to cell owners provide the capacity to write business, ensuring that the necessary solvency requirements are maintained. In the first year, the solvency is supported by the share capital and share premium provided by the cell owner but in subsequent years, the retained profits of each protected cell can also be used to support the solvency requirements. Retained profits can be returned back to the cell owner by way of dividends or used to retain greater risk within the protected cell for the direct benefit of the cell owner and associated policyholders of the specific insurance programme.